Bitcoin price would surge past $600K if 'hardest asset' matches gold
Bitcoin (BTC) is due to copy gold’s explosive 1970s breakout as it becomes the world’s “hardest asset” in 2024.
That was one forecast from the latest edition of the Capriole Newsletter, a financial circular from research and trading firm Capriole Investments.
Despite BTC price action flagging at nearly 80% below its latest all-time high, not everyone is bearish about even its mid-term outlook.
While calls for a further drop before BTC/USD finds its new macro bottom remain, Capriole believes that 2023 will be bright for Bitcoin as a reserve asset.
The reason, it says, lies in the world economy’s financial history of the past century, and in particular, the United States after the dollar deanchored from gold completely in 1971.
Gold, as the world’s premier safe haven of the time, saw “huge” gains during the decade, and fifty years later, it is Bitcoin’s turn.
“Because gold was much smaller in the 1970s (and Bitcoin today is even smaller by comparison), it had capacity to make big moves through a decade of inflation and high interest rates,” Capriole wrote.
Accompanying charts underscored gold’s potential to repeat its 70s behavior, among which were a “cup and handle” chart structure playing out since 2010.
When it comes to Bitcoin vying with gold for the safe haven crown, meanwhile, the potential lies in the numbers — at just 2.5% of gold’s market cap, BTC diving 80% from its $69,000 peak last year has little bearing on the overall picture.
“Given Bitcoin represents just 2.5% of gold’s market capitalization today, its 80% drawdown adds a mere 2% additional drawdown to the combined hard money (gold + Bitcoin) drawdown,” the newsletter continued.
Should the stage already be set for a Bitcoin copycat move of 70s gold, the growth
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