Bitcoin Faces Digital Gold Challenge as Gold Surges, Says Bloomberg Strategist

Bitcoin’s role as “digital gold” is under scrutiny as physical gold gains momentum, according to Bloomberg Intelligence senior commodity strategist Mike McGlone. In a series of tweets, McGlone highlighted significant outflows from Bitcoin ETFs over recent months, attributing this to waning institutional interest. At the same time, gold, after a multi-year downtrend, is experiencing a strong resurgence, signaling a possible shift in investor preference toward traditional safe havens.

McGlone noted that Bitcoin’s meteoric rise was fueled by what he called “the biggest money pump in history,” referring to heavy inflows into crypto during 2024’s bull run. However, that phase may have peaked, with Bitcoin now experiencing what he describes as a “hangover” as ETF outflows continue. His analysis suggests that this trend could mark 2024 as the apex of risk-asset speculation, with a renewed investor focus on gold.

Despite Bitcoin rebounding 8% between Friday and Sunday—from $79,040 to $85,430—McGlone’s data shows gold steadily outperforming BTC. He also pointed out that Chinese government bonds are falling, implying a wider investor migration away from risk assets toward gold.

In contrast, financial author Robert Kiyosaki offered a more bullish take on both Bitcoin and gold. Calling the current economic turmoil the “giant crash” he predicted two decades ago, Kiyosaki reiterated his stance that the U.S. dollar is collapsing under central bank mismanagement. He urged investors to avoid traditional financial instruments like stocks and mutual funds, instead promoting Bitcoin, physical gold, and silver as the only real protection against inflation and systemic failure.

At the time of writing, Bitcoin is trading at approximately $85,030. The growing divergence between digital and physical safe havens is fueling debate among analysts and investors worldwide.