Gold futures have surged to a historic $4,000 per ounce, driven by increased interest in safe-haven investments. Market experts speculate that Bitcoin may follow this upward trajectory.
Earlier today, gold price futures hit $4,000 per ounce, while spot prices peaked at $3,976 according to TradingView.
Peter Schiff, a known gold advocate and Bitcoin skeptic, noted, “Gold is at a new record high. This serves as a clear indication that the Federal Reserve’s current strategies are misguided,” advocating for a revision of monetary policy and an increase in interest rates.
Throughout the year, gold has gained over 50%, largely due to growing geopolitical concerns, trade tariffs, and inflationary pressures affecting fiat currencies. In contrast, Bitcoin has only gained 33.5% during the same timeframe. Analysts suggest that Bitcoin is positioned for a potentially significant surge similar to gold’s trajectory by year-end.
Analysts Predict Bitcoin’s Strong Performance
Henrik Andersson from Apollo Capital remarked, “Gold reaching its peak reflects the investor interest in scarce assets. We project Bitcoin will outperform gold in this context.”
Justin d’Anethan from Arctic Digital asserted that gold’s milestone of $4,000 confirms the underlying factors driving Bitcoin’s value.
Both assets react similarly to economic concerns, including U.S. deficits and waning dollar trust.
“Gold is traditional and firmly established, while Bitcoin is more volatile, continuously available, and considered more future-oriented.”
Bitcoin’s Relationship with Gold
Bitcoin is known to lag behind gold trends, according to analyst James Bull, indicating that adjustments are necessary. Bull has conveyed that as gold hits new highs, Bitcoin is expected to follow and highlighted that Q4 could yield significant outcomes for Bitcoin.
Moreover, Ted Pillows recently pointed out that Bitcoin historically shares a correlation with gold with an eight-week delay.
In a recent report by Cointelegraph, it was shown that Bitcoin had reestablished its correlation with gold as both neared their peak values. Bitcoin hit a record high of $126,000 earlier this week, strengthening this correlation further.
Bitcoin Projections
David Marcus, Litespark’s CEO and former PayPal head, remarked that if Bitcoin’s value were aligned with gold’s, it could reach $1.3 million.
“Bitcoin surpassing seven digits is inevitable due to its superior value retention and unquantified benefits for payment utility.”
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