Cryptocurrency analyst Joao Wedson said the weaknesses of the Bitcoin (BTC) to Gold (Xau) pair could be a positive signal for the market in the long run.
In his report, Wedson argued that in particular large institutions and banks have recently changed from Bitcoin to gold.
In his analysis last December, Wedson said the change represents “the perfect sales and rotation opportunity” for institutional investors. Analysts say Gold is currently approaching “peak purchases” and is expected to enter the distribution phase at the end of this period. At this point, he predicts that more conservative capital could return to more risky assets, especially Bitcoin.
“The BTC/XAU chart is much more important than BTC/USD. Most investors overlook this difference and always suffer losses,” Wedson said, “Gold has been and will remain a reference point for thousands of years.”
According to Wesson, gold could stay sideways at least two years after peak. He believes Bitcoin is ready for a similar parabolic rally to 2017 during this period. However, he predicts that the move will occur after 2028, not 2025 or 2026.
*This is not investment advice.
