Key takeaways:
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Bitcoin has a history of gold released, more recently by six times.
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Climbing gold to $ 5,000 can set the stage for significantly Bitcoin acquired.
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Weakening the US dollar and increasing global liquidity remains major drivers for both properties.
Gold march to $ 5,000 per ounce and beyond became a big topic in hard-asset bulls, including Yardeni’s head Research Ed yardeni and billionaire investors John Paulson.
But what could happen to the price of bitcoin (Btc), tout as “Digital Gold“By many, if precious metal screams even higher?
BTC jumped price of 6x last time ralling the gold
Bitcoin has historically delivered bigger ones than gold when their market rally at the same time.
From March 2020 to March 2022, during the Federal Reserve’s ultra-loose financial policies, the BTC price moved approximately 1,110%, while gold increased by only 35.5%.
In November 2022 -November 2023 rally, at the same time increase GLOBAL MONEY (M2) SUPPLYGold gets almost 25%, while Bitcoin jumps 150% or almost 6x outperformance.
Related: When the price of gold hits new highs, history shows ‘bitcoin follows’ within 150 days – analyst
The climb of gold from its current value around $ 3,265 to $ 5,000 equals 50% acquisitions. So, if history is repeated, bitcoin can grow by 300% or at a price of $ 285,000 per BTC.
Aligned with APSK32’s analyst Bitcoin’s expected target pricebased on a Power Law model that is normalized against the Gold Market Cap.
Gold Boom will push Bitcoin to $ 250k – veteran Fund Manager
Frank Holmes, CEO of US Global Investors, is seeing gold stepping up to $ 6,000 during the president of Trump’s president, who is focusing that the bullion was caught behind the Global M2 Money Supply Surge.
He linked this bold target to Trump’s tariff policies, which he believes could weaken the US dollar around 25%, strengthening the Gold appeal in conjunction with strong demand on the central bank and underweight investor positioning.
https://www.youtube.com/watch?v=AFJU2Z6IXKU
Holmes predicts that Bitcoin could break the $ 97,000 overhang supply and climb to $ 120,000- $ 150,000 in the near term, with a longer potential to reach $ 250,000 as an adoption.
BTC can hit $ 155k if the lagging correlation of gold
In late April, gold climbed a full time high of $ 3,500, up to 33.35% year-to-date (YTD). It was corrected slightly to reach $ 3,237 until May 5. In comparison, Bitcoin rose only 0.82% YTD.
Some observers in the market, including analyst Cryptollica.
Bitcoin’s 30% pullback from a record high around $ 110,00 will appear mild compared to previous sales of more than 50%. This elastic strengthens its role next to gold and raises the opportunity that it can follow the gold rally if market conditions improve.
This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.
