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Veteran analyst Peter Brandt is making a bold prediction that is generating a lot of conversation in the cryptocurrency space: by 2025, bitcoin should see its price rise by 400% relative to gold.
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Considers that, according to the market patterns observed so far, bitcoin” target=”_blank” rel=”nofollow”>bitcoin It could fetch the equivalent of about 123 ounces of gold.
This potential rally comes on the back of widespread price predictions, as bitcoin is likely to surge 65% in the next three months and nearly 100% in six months, data from CoinCheckup shows. Over the next year, a 130% increase is estimated, meaning confidence in bitcoin’s upward movement is quite strong.
There has never been a better time for investors to ponder this question: Can bitcoin surpass gold’s iconic status as the ultimate store of value? It doesn’t matter if the cryptocurrency market can’t resist its bold prophecies; the confluence of key factors seems to portend a bitcoin triumph over gold in the coming years.
<blockquote class="twitter-tweet”>
When I look at the bitcoin/Gold ratio chart, this is how it looks: twitter.com/search?q=%24GC_G&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow”>$GC_G twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow”>$btc twitter.com/search?q=%24BTCXAU&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow”>$ BTCXAU
1. Continuation of the inverted H&S pattern, neckline from 32.5 to 1
2. Left shoulder down to 14.2 to 1
3. Right shoulder forming a flag
4. It could decrease to 1
5. Objective 123 to 1 image.twitter.com/VKvsDqwkuU
—Peter Brandt (@PeterLBrandt) twitter.com/PeterLBrandt/status/1837621965407818193?ref_src=twsrc%5Etfw” rel=”nofollow”>September 21, 2024
Institutional adoption fuels optimism
One major reason why bitcoin is likely to skyrocket soon is because of rising institutional investment. Large financial firms, and even governments, have begun to view bitcoin as a store of value similar to old inflation hedges like gold. That institutional support will be crucial in driving bitcoin’s price even higher as capital continues to pour into the market in ever-more sizable volumes.
But perhaps most importantly, decentralized finance has opened up new uses for bitcoin beyond its function as a store of value. By bringing the underlying cryptocurrencies into the DeFi ecosystem, investors can utilize their bitcoin positions in ways that gold simply cannot.
According to Titan of crypto, another respected voice in the crypto community, bitcoin’s unique position within DeFi will only strengthen its value proposition against traditional assets like gold.
Gold surge could boost bitcoin
Interestingly, the expected rise in gold prices could indirectly benefit bitcoin. gold By registering new all-time highs, the narrative of precious metals as a hedge against economic turmoil is reinforced.
However, this makes bitcoin a more functional option considering its digital nature and growing utility within decentralized finance. Investors looking to diversify may see bitcoin as a way to gain exposure to both safe haven assets and the rapidly evolving digital economy.
According to Wall Street investment banks, gold is likely to surpass $2,700 as 2025 progresses, thanks to the planned rate cuts by the Federal Reserve. If bitcoin maintains its current trend, its price compared to gold could rise, perhaps reaching the 123-ounce threshold.
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How do investors feel about this?
The implications of this prediction are substantial for investors. bitcoin holders would see significant rewards if the price of the alpha coin were to increase by 400% relative to the popular yellow metal.
Investors should exercise caution when considering this opportunity, even though bitcoin's long-term outlook remains bullish, particularly in light of its projected 132% price increase over the next year.
Overall, the cryptocurrency landscape is evolving rapidly and bitcoin’s role as a store of value could very well overtake that of gold in the coming years. Investors should keep an eye on both assets as economic conditions change and markets react to global events.
Featured image from Asia Times, chart from TradingView
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