According to Bloomberg Intelligence’s Senior Commodity Strategist, Mike McGlone, the recent trend of gold prices increasing relative to Bitcoin prices is significant and could continue. Bloomberg data shows that as of May 8, 2023, the price of gold was up 10% year on year, while Bitcoin was down almost 20%. McGlone believes that Bitcoin rollover risks lean toward deflation. Bloomberg’s analysis shows a correlation between the S&P 500’s peak and trough, its 100-week moving average, and the Bitcoin/gold ratio. However, opinions on the future of both gold and Bitcoin can vary widely, and there is no way to predict with certainty how the disparity will evolve in the future.

Investors are seeking safe haven assets amidst economic uncertainty, with gold and Bitcoin being considered viable options. Bloomberg's senior commodity strategist, Mike McGlone, believes that gold will continue to outperform Bitcoin in the coming months due to factors such as the Bitcoin-to-gold ratio. However, he maintains his bullish stance on Bitcoin and notes that both assets have been touted as possible safe havens due to inflationary pressure and the ongoing banking crisis. McGlone's sentiment follows his previous analysis that gold would likely outperform Bitcoin in a recession, especially if it involves a stock market downturn.

Tether, the stablecoin issuer, has reported a net profit of $1.5 billion for Q1, more than double the previous period, according to its attestation report. The company's consolidated total assets were at least $81.8 billion as of May 9, with consolidated total liabilities of $79.4 billion, resulting in excess reserves of at least $2.44 billion, an all-time high. Tether has also included additional categories in its reserves reporting for the first time, including bitcoin, physical gold, overnight repo, and corporate bond allocations. The company holds $1.5 billion worth of bitcoin and $3.3 billion worth of precious metals.

According to Bloomberg's senior commodities specialist Mike McGlone, gold may perform better than Bitcoin during a potential recession, especially if it involves a stock market slump. McGlone's analysis shows that the metal is moving upward while Bitcoin is declining on a 100-week basis. Gold saw a strong upward move as the Federal Reserve hiked interest rates, signaling its correlation with rising interest rates. Meanwhile, Bitcoin's vulnerability is due to its higher correlation to the stock market and risk assets. McGlone believes the worst is over and that there is a consensus for a soft landing, but Société Générale's strategist Albert Edwards argues that a recession is a done deal.

According to a research report by JPMorgan, the regulatory crackdown on cryptocurrencies in the U.S. is causing American crypto firms to seek opportunities overseas. The report notes that the lack of clarity on issues such as ether's status as a security is also impacting demand and liquidity in the cryptocurrency market. The regulatory pressure has deterred institutional investors from engaging with crypto, and some investors are buying gold instead of bitcoin as a hedge against a potential catastrophic scenario. Bitcoin's rally this year is said to be driven more by retail buying than institutional investors. A new protocol called Bitcoin Ordinals, which allows non-fungible-tokens to be stored on the Bitcoin blockchain, has also contributed to bitcoin's outperformance.

Bitcoin is reportedly seeking liquidity above $30,000 USD as gold hits a new all-time high. According to analysts, Bitcoin's price has been closely correlated with that of gold, and the recent surge in gold prices could help drive a potential rally in Bitcoin's price. The $30,000 USD mark is seen as a key level of support for Bitcoin, and if it can surpass this level, it could potentially trigger a new wave of buying activity. However, the analysts also caution that Bitcoin's price will face resistance at around $40,000 USD, which could limit the size of any potential rally.

China's gold reserves have increased by 18 tons in March, continuing its buying spree that started in November 2022. The country has purchased more than 100 tons in the last five months, bringing its total gold reserves to 2,068 tons. The World Gold Council predicts that central banks will continue to hoard gold this year due to the strong demand for the commodity and the need to seek refuge in safer assets during inflationary times. Economists suggest that China may be preparing for the issuance of a gold-backed currency as part of the BRICS strategy to reduce dependence on the U.S. dollar. The continued demand for gold by central banks and macroeconomic headwinds have caused analysts to predict a rise in gold prices in the future, with some predicting that gold prices might touch the $8,000 mark in the next decade.

Bitcoin's correlation to gold has surged to its highest level in over a year, standing at 50%, according to research from blockchain analytics firm Kaiko. Meanwhile, its correlation to the stock market has fallen to roughly 20% since December.

During Friday’s session, when Bitcoin touched the low of $19,500 due to the fallout of SVB, further contagion spread into Europe.

President Biden went on national television to speak on the US banking sector.