Bloomberg’s senior commodity strategist Mike McGlone is optimistic that Bitcoin could soon trade like gold, lowering volatility and positive price movements.
The Bitcoin trading curve is expected to replicate gold, despite the recently widened spread after ProShares Bitcoin Strategy ETF launch in the U.S.
A surge in bitcoin value is underpinned by analysts’ projections of a 20% return on a fully-hedged position if it drops to zero.
Bitcoin futures are still less than the size of the gold market and the entire crypto market, giving it room for potential wider participation and appreciation.
Bitcoin’s estimated open interest of around $4 billion is lower than gold at $90 billion. The crypto futures market at the start of 2020 was $200 million against $125 billion for gold.