Categories: Blockchain Investments
Topics: Cryptocurrency

Bitcoin is Following Gold to $700,000. Find Out How.

Recently, Jurrien Timmer, Global Macro Director at Fidelity (NYSE: FNF), referred to Bitcoin as "exponential gold", sparking discussion about Bitcoin's future market trajectories and the potential impacts of a spot ETF. 

Timmer's comparison of Bitcoin to gold underlines the growing importance of the cryptocurrency as a store of value and a shield against currency devaluation. He draws attention to gold's historic role as a store of value during periods of high inflation, negative real interest rates, and excessive money printing, making the case that Bitcoin might play a similar part in today's financial environment.

Monetary Inflation: Bitcoin and Gold

Historical moments such as the 1970s and 2000s, when gold thrived in times of economic instability, serve as Timmer's basis for comparing gold and Bitcoin. A clear correlation between the success of gold and significant money supply (M2) increases is identified.

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Through his "Bitcoin analogs" chart, Timmer predicts possible price paths for Bitcoin based on previous market cycles. According to these patterns, Bitcoin could potentially achieve a value of approximately $700,000, with a more conservative estimate placing its price between $200,000 and $300,000.

Through his "Bitcoin analogs" chart, Timmer predicts possible price paths for Bitcoin based on previous market cycles.

If Bitcoin reaches the same market cap as gold ($13 trillion), each BTC will be worth well over $400,000. As investors increasingly adopt Bitcoin as a store of value, I believe this is an inevitability. 

Bitcoin's potential has been recognized by financial figures such as Larry Fink of BlackRock (NYSE: BLK), Mohamed A. El-Erian of Allianz (OTCMKTS: ALIZY), analysts at AB Bernstein (NYSE: EQH), and Stanley Druckenmiller, further solidifying its position in the financial landscape.

Bitcoin is Following Gold to $700,000. Find Out How

The potential authorization of a Bitcoin Spot ETF has piqued significant interest. Charles Yu of Galaxy Digital (OTCMKTS: BRPHF) uses the influence of gold ETFs on their underlying assets as a model to explore its potential impact. The price of gold has increased substantially since the launch of the SPDR Gold Trust (NYSEARCA: GLD) in 2004.

Charles Yu predicts Bitcoin ETFs could experience inflows of $14.4 billion during their first year, potentially leading to a 74% increase in Bitcoin's price over the subsequent 12 months. Gabor Gurbacs, digital asset strategy director at VanEck (NYSEARCA: DGIN), believes Bitcoin's price trajectory could follow gold's pattern from 2004, but at an accelerated pace due to Bitcoin's "systematic scarcity".

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As Bitcoin earns more recognition, its potential as a store of value and a hedge against economic uncertainty continues to grow. 

There is a long list of spot BTC ETFs awaiting approval.

There is a long list of spot BTC ETFs awaiting approval. Once approved, a flood of capital will flow into Bitcoin, propelling the entire crypto market. We are in a key accumulation zone as I write this. 

Don’t miss out on this exponential growth unfolding over the next 2 years.

Keep coming back,

Chris Curl

Chris Curl
Editor, Daily Profit Cycle