Research firm Capriole Investments, in its latest newsletter bitcoin made an exciting prediction for him. The firm thinks that in 2024, BTC could follow the explosive rise of gold that it did before. Moreover, the company underlined that all this development could continue in a much stronger way throughout the 2020s.
Bitcoin is trading at an average of 80% lower these days after hitting its peak in November last year. As a matter of fact, analysts and investors are much more optimistic about BTC price in the medium-long term.
Although the BTC / USD parity has not clearly caught the bottom point it is looking for, Capriole believes that Bitcoin will come to the fore as a “reserve asset” in 2023.
According to the company, the biggest reason for this is related to the internal dynamics of the USA. Referring to 1971, when gold was completely separated from the dollar. Caprioleexpects a similar move for Bitcoin.
throughout the 1970s gold It started the “safe harbor” narrative and has achieved strong gains by maintaining it until today. Capiriole is one of those who thinks that the next safe harbor will be Bitcoin.
“Because gold was so much smaller in the 1970s (and Bitcoin is even smaller by comparison today), it had the capacity to make big moves during a decade of inflation and high interest rates,” Capriole commented.
The charts highlighted the potential of gold to repeat the behavior of the ’70s, including the “cup and handle” chart structure that has continued since 2010.
Can Bitcoin Follow Gold?
CryptocurrencyBitcoin, which is called the safe harbor of the world, offers different values compared to gold today. For example, BTC’s total market cap is only 2.5% of gold.
“Given that Bitcoin represents only 2.5% of the market cap of gold today, its 80% drop adds just an additional 2% to the combined gold + Bitcoin drop. “This translates into a 24% aggregate cumulative currency decline through November 2022, comparable to the 1970 and 1975 figures for gold.”
As predicted, if BTC can follow the price action of gold, an explosive move will come. As a matter of fact, according to the firm, the explosive growth rate is increasing because Bitcoin is much smaller. The company’s forecast is for a 40-fold growth.
Popular Book Also Defends Argument
The popular book by commentators such as Saifedean Ammous echoed the long-held argument in The Bitcoin Standard.
The discussion in the book focuses on investors’ shift to Bitcoin as the inflation rate drops below gold and increases its monetary “hardness” against the metal.
Capriole added that this will confirm that Bitcoin is “the world’s most solid asset” in the next block subsidy halving in 2024.
As Koinfinans.com reported, if Capriole’s prediction comes true, the BTC price will rise to the level of $ 600,000.