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bitcoin (btc) broken It reached the $100,000 price milestone yesterday, reaching as high as $104,088 on the Binance crypto exchange. This historic price action has led analysts at trading firm Bernstein to claim that bitcoin is well positioned to replace gold in the next decade.
bitcoin is poised to eclipse gold in the next decade, says Bernstein
in a <a target="_blank" href="https://www.cnbc.com/2024/12/05/bitcoin-to-replace-gold-over-next-decade-says-bernstein.html?taid=6751a0bda7e8ea00018ecc8f” target=”_blank” rel=”nofollow”>customer note Posted today, analysts at Bernstein, led by Gautam Chhugani, expressed confidence that bitcoin will eventually take over gold's role as a reliable safe asset. The note said:
We expect bitcoin to emerge as the leading new-age “store of value” asset that will eventually replace gold over the next decade and become a permanent part of institutional multi-asset allocation and a standard for treasury management. corporate.
Year to date (YTD), bitcoin is up an impressive 141%. However, most of these gains came following the victory of pro-cryptocurrency Republican candidate Donald Trump in the November US presidential election.
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The cryptocurrency market has seen a surge in optimism following Trump's victory, as the president-elect is expected to create a favorable regulatory environment for digital assets. Since November 4, the total cryptocurrency market capitalization has increased from $2.4 trillion to $3.9 trillion at the time of writing, a staggering 62.5% increase.
In the note, Bernstein predicts that btc may rise to $200,000 by the end of 2025. The trading firm's forecast aligns with that of Charles Edwards, founder of Capriole Investments, prediction that btc can potentially double in value in a matter of weeks, as its relatively smaller market capitalization allows for faster price movements.
btc adoption is the main driver of its success
Bernstein's bullish outlook was reinforced by DA Davidson analyst Gil Luria, who identified widespread adoption as the key factor behind bitcoin's success. However, he warned that bitcoin still has a “long way to go” before it is widely accepted as a medium of exchange and unit of account. Luria added:
bitcoin's current primary application as a store of value: an appreciating, low-correlation asset that replaces gold as a hedge against a decline in economic stability.
While bitcoin has yet to achieve widespread use as a currency, it has gained significant traction as a reliable asset class for corporate balance sheets. Recently, Hut 8, a leading crypto mining company, announced plans to establish a strategic bitcoin reserve.
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In November, video sharing platform Rumble shared his plans to bolster his btc holdings. At the same time, btc reserves on crypto exchanges are likely to decline. adding to the shortage of supply of the asset, which subsequently caused its price to rise. At press time, btc is trading at $103,172, up 7.9% in the last 24 hours.
Featured image from Unsplash, chart from Tradingview.com
