Deutsche Bank analysts highlighted the similarities between gold and Bitcoin. That’s because both assets continue to perform well this year. Other analysts have also made bullish predictions for BTC, noting that the flagship cryptocurrency appears to be mirroring the precious metal’s price movements as investors jump on board. ‘Underground trade.’
Deutsche Bank draws parallels between gold and Bitcoin.
no way Deutsche Bank Report It highlighted how banking analysts argue that the same behavior shown by central banks towards gold in the 20th century is similar to how they view Bitcoin today. Analysts also believe that BTC record achievement Gold also surpassed $4,000 per ounce for the first time this month.
Moreover, Deutsche Bank analysts said Bitcoin is increasingly being discussed among policymakers as a reserve asset alongside gold. Interestingly, the bank predicted The central bank said it could accumulate BTC alongside gold as a reserve asset by 2030. Analysts have pointed out that BTC has similar characteristics to gold, being viewed as a hedge against macro uncertainty.
This gave Bitcoin the tag ”.digital gold,’ Investors continue to invest in BTC instead of gold as part of a ‘decrease trade.’ The ongoing U.S. government shutdown has further fueled these transactions, triggering further macro uncertainty. analyst Holger Zschaepitz commented: BTC is following its analogue, recently hitting new highs above $125,000.
He added that this was a milestone in the ongoing devaluation deal as investors seek protection from currency devaluation. meantime, Crypto analyst Merlijn said: BTC moves when gold leads, and in all previous macro breakouts, Bitcoin has followed with parabolic force. Accordingly, the analyst predicted that the flagship cryptocurrency could next rise to $160,000 if the pattern repeats. This is consistent with: Analysis by JPMorganIt found that BTC is still undervalued compared to gold and could rise to $165,000 by the end of the year.
BTC could reach $644,000 based on gold correlation.
Head of Digital Asset Research at VanEck; Matthew Sigel said: He said Bitcoin could reach half the market capitalization of gold after the next halving in 2028. He pointed out that at current gold prices, this means the flagship cryptocurrency could rise to $644,000. The current market capitalization of gold is $27 trillion. BTC market capitalization It’s only $2.2 trillion.
Sigel 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 surveys show that younger consumers in emerging markets increasingly prefer Bitcoin as a store of value over gold. SkyBridge CEO Anthony Scaramucci echoed: There is a similar sentiment that there will be major changes in society as young people rise to senior positions. Gold to BTC Allocation.
At the time of writing, the price of Bitcoin is said to be trading around $112,500, having fallen over the past 24 hours. data From CoinMarketCap.
Featured image from Getty Images, chart from Tradingview.com
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