Analysts at Deutsche Bank highlight the similarities between gold and Bitcoin as both assets continue to outperform this year. Other analysts have also made bullish predictions for Bitcoin, noting that the leading cryptocurrency appears to be mirroring the precious metal’s price movements as investors jump into Bitcoin. “Degrading trade.”
Deutsche Bank points out similarities between gold and Bitcoin
a Deutsche Bank Report Analysts at the bank highlighted claims that the same actions central banks showed towards gold in the 20th century have similarities to their current view of Bitcoin. Analysts also believe that BTC record breaking performance This year, it’s similar to gold, which topped $4,000 an ounce for the first time this month.
Additionally, Deutsche Bank analysts said that Bitcoin is increasingly being discussed among policymakers as a reserve asset alongside gold. Interestingly, the bank predicted Analysts noted that BTC has similar properties to gold and is seen as a hedge against macro uncertainties.
This gave Bitcoin the tag “”.digital gold” Meanwhile, investors continue to pile into BTC as a gold substitute as part of a “downgrade trade.” Thanks to the ongoing U.S. government shutdown, this trade has become even more active, adding to the macro uncertainty. analyst Holger Tzeshapitz pointed out that BTC has been following analog currencies, recently hitting new highs above $125,000.
He added that this is a milestone in the ongoing currency devaluation trade as investors seek protection from currency devaluation. meanwhile, Cryptocurrency analyst Marlin said: Bitcoin moves when gold leads, and in previous macro breakouts Bitcoin has followed with parabolic force. In line with this, analysts predicted that the flagship cryptocurrency could next rise to $160,000 if this pattern repeats. This matches JP Morgan analysiswe found that BTC remains undervalued compared to gold and could rise to $165,000 by the end of the year.
Based on gold correlation, BTC could reach $644,000
Head of Digital Asset Research at VanEck; Matthew Siegel said He said Bitcoin could reach half the market cap of gold after the next halving in 2028. At current gold prices, this suggests the flagship cryptocurrency could rise to a high of $644,000, he said. The market capitalization of gold is currently $27 trillion. BTC market capitalization Only $2.2 trillion.
Siegel explained that about half of gold’s value comes from its use as a store of value, rather than from industrial or jewelry demand. He added that research shows that young consumers in emerging markets tend to prefer Bitcoin over gold as a store of value. Skybridge CEO Anthony Scaramucci agrees. A similar opinion states that as young people age and move into senior positions, major changes will occur in their social status. Gold to BTC allocation.
As of this writing, the price of Bitcoin has fallen over the past 24 hours and is trading at around $112,500. data From CoinMarketCap.
Featured image from Getty Images, chart from Tradingview.com
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