As gold breaks records at nearly $4,000 on Monday, analysts forecast a considerable jump in Bitcoin’s value as it approaches its next halving scheduled for 2024.

Bitcoin could align itself to half gold’s market cap by 2028, with current gold price trends estimating its worth at around $644,000. Matthew Sigel, head of digital asset research at VanEck, mentioned in a post on X that, “We’ve been saying Bitcoin should reach half of gold’s market cap after the next halving.”

Gold futures hit an impressive record above $4,000 per ounce this week, prompting a surge of traders drawn to this safe-haven asset. Sigel further highlights, “that price implies an equivalent value of $644,000 per [Bitcoin].”

Historically, Bitcoin is often compared to gold, though gold has notably performed better this year, soaring 50% amidst concerns over U.S. political issues, fluctuating dollar value, and intermittent tariffs.

Young Investors Favor Bitcoin

Sigel notes that younger investors increasingly see Bitcoin as a reliable store of value, a traditional role often assigned to gold. “About half of gold’s value is based on its function as a store of value rather than for industrial or ornamental use, and surveys indicate that younger consumers in developing regions are leaning towards Bitcoin for this purpose,” he stated.

Source: Matthew Sigel

Analyst Jordi Visser noted that young generations view the financial system as deteriorating yearly. Their demands for increased public spending might further elevate Bitcoin’s market position.

Potential for Higher Gold Prices

Veteran trader Peter Brandt mentioned that gold could still increase despite its peak, asserting, “Gold may go substantially higher before any meaningful correction. How much higher? No clue!”

Bitcoin recently hit an all-time high above $126,000 yet remains about 15% below its zenith when valued against gold, according to Bitcoin skeptic Peter Schiff.

To align with its previous gold values, Bitcoin must rise to approximately $148K. Schiff cautions against excessive optimism, suggesting, “It’s too early for Bitcoiners to celebrate. Until Bitcoin can achieve new records priced in gold, it remains just a bear market rally.”

Conversely, Joe Consorti, from Bitcoin custodian Theya, observes a shift in Bitcoin’s valuation floor to $1.34 million as a result of gold’s ascent.