Gold Investors Are Moving On To Cryptocurrencies Like Bitcoin And Ethereum, Says Bloomberg Commodities Strategist

Investors are giving up on gold and moving on to cryptocurrencies such as Bitcoin BTC/USD and Ethereum ETH/USD, according to Bloomberg Intelligence Commodity Strategist Mike McGlone.

What Happened: McGlone said in an interview with Stansberry Research that he underestimated the outflows from gold to the major cryptocurrencies this year, with the limited supply of cryptocurrencies overtaking the precious metal.

See Also: How To Buy Bitcoin (BTC)

“Every day that Bitcoin doesn’t fall, it's moving into gold’s space and this year is a good example of that,” McGlone said, noting that gold is down about 7% on the year.

The strategist believes that Bitcoin could rally to $100,000 this year after that massive correction that saw the apex cryptocurrency falling below the $30,000 level.

Why It Matters: Investors who previously took positions in gold as an inflationary hedge are now investing in cryptocurrencies in order to diversify their portfolios amid the rising popularity of Bitcoin and Ethereum, the world's two largest cryptocurrencies by market capitalization.

Apex cryptocurrency Bitcoin’s year-to-date gains stand at almost 50.4%, while Ethereum’s year-to-date gains are 329.4%.

Price Action: Bitcoin is up 3.6% during the past 24 hours, trading at $43,942.04 at press time, while Ethereum is up 7.2% during the 24-hour period to $3,137.17.

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