- Bernstein analyst says Bitcoin is more attractive than gold.
- Gautam Chhugani explained why in a research note today.
- Bitcoin is currently down about 10% versus its YTD high.
Gold has a history of doing well in a recession – but this time Bitcoin is an even better investment, as per a Bernstein analyst.
Bitcoin has a history of outperforming gold
Gautam Chhugani continues to see the world’s largest cryptocurrency as the ‘safe haven’ since it has performed about five times better than gold since 2018.
At 1.8%, he agreed that Bitcoin inflation is comparable to gold inflation for now but said “skeptics miss that every four years, [the former’s] inflation halves”.
The total supply of Bitcoin is scheduled to halve in May of 2024. Historically, that event has resulted in significant price appreciation.
Last week, billionaire hedge fund manager Paul Tudor Jones also said Bitcoin was a better investment than stocks in the current environment (read more).
Spot Bitcoin ETF will unlock significant demand
Gautam Chhugani is convinced that capital will flow into Bitcoin further as fears of recession continue to swell.
The Bernstein analyst dubs the cryptocurrency a better investment than gold also because it is at a “fairly early stage of institutional adoption”. Significant demand will unlock once the Securities & Exchange Commission approves the first U.S. Spot Bitcoin ETF, he added.
Bitcoin currently has a market cap that’s not even 5.0% versus that of Gold.
BTC soared materially this morning following a report that the regulator has approved iShares Spot Bitcoin ETF. But the news was later confirmed as fake and resulted in a sharp pullback that brought Bitcoin back to around the $28,000 level.
Credit: Source link