If Bitcoin (BTC) continues to follow gold, it could be sucked towards $50,000 like a magnet, new analysis predicts.
TechDev, popular trader and market commentator, in a January 26 Twitter update Presented A lofty new BTC price target tied to XAU/USD.
Inverse Dollar Correlation Between Gold and Bitcoin Is ‘No Question’
A bullish price take is surfacing as debate remains over how much bitcoin will compete with gold.
TechDev’s outlook is more optimistic than many.
“What if Bitcoin continues to follow Gold/DXY?” he asked.
The accompanying chart compares BTC/USD to Gold and the US Dollar Index (DXY). The precious metal TechDev alluded to in a continuation of its earlier story may be leading Bitcoin in terms of recovery.
As reported by Cointelegraph, the correlation between gold and Bitcoin is now virtually 100%.
“Other than a momentary reaction to a geopolitical event…do you think gold is leading Bitcoin for 4 years?” Previous Twitter Thread Asked.
TechDev said the idea was “not a prediction. It’s a legitimate question.”
“It would be interesting if it worked. There is no doubt that both assets are inversely correlated to the dollar,” he concluded.
If Bitcoin continues to chase gold in relative terms, the outcome could be a game changer for the bulls. Data from Cointelegraph Markets Pro shows that XAU/USD is up 6.1% year-to-date, trailing BTC/USD by a whopping 39%. TradingView.
Bitcoin could now cross $50,000, not just $30,000, according to TechDev.
Analyst: Gold set for imminent huge trade boost
Even gold bugs, traditionally far from bitcoin’s ally, are looking to a new tranquil age for gold’s own destiny.
RELATED: Bitcoin Faces ‘Substantial Risk’ From Fed in 2023 – Lyn Alden
Goldmoney’s head of research, Alasdair MacLeod, put geopolitics at the forefront this week, predicting significant increases in gold-based trading across Russia, China and Asia as a whole.
“Russia will not make a formal announcement about the gold standard because there is no need. Neither will China: it may reveal an increase in its gold reserves instead,” says Gold Money part. article It was released on January 26th.
MacLeod himself is not a bitcoin fan and has a dedicated article compare We’ve been using gold as gold since December and predicting the latter will win the crisis once and for all.
“To establish itself as money, bitcoin must obey the law of time precedence. We must change the relationship with the current interest rate so that
“We do not attempt to speculate on this future. However, we are confident that if the currency depreciation accelerates, the relative value of gold may rise accordingly, while the relative value of Bitcoin may not.” I can say it with
Mike McGlone, senior macro strategist at Bloomberg Intelligence, frequently entertains the pace of bitcoin surpassing gold over the long term.
The views, thoughts and opinions expressed herein are those of the authors only and do not necessarily reflect or represent the views or opinions of Cointelegraph.