As the price of gold continues to rise and is predicted to hit 153 million VND per tael, many experts are hopeful that Bitcoin – the digital gold will break out similarly. According to historical analysis, whenever gold increases by 50%, BTC can jump by up to 300%, pushing the price above 285,000 USD.
BTC once increased 6 times when gold broke out
History shows that whenever gold rises, Bitcoin rises even more strongly. For example, during the period from 2020 to 2022 when the Fed flooded the market with money, gold increased by 35% while BTC surged over 1,100%. In the later period, from late 2022 to 2023, gold increased by 25% while BTC jumped 150% — nearly 6 times the performance.
Currently, if gold rises from 100 million to 153 million per tael (a 50% increase), according to old logic, Bitcoin could increase by 300% — equivalent to a price of 285,000 USD. Some analytical models suggest that BTC could completely approach gold's market capitalization in the long term.
Under Trump, gold could reach 184 million per tael – will BTC benefit?
Frank Holmes – CEO of US Global Investors believes that under President Donald Trump, the price of gold could reach 184 million per tael (~6,000 USD). He argues that Trump's tax policy could weaken the US dollar by about 25%, thereby boosting the flow of money into gold and Bitcoin.
Holmes believes that if Bitcoin surpasses the resistance level around 97,000 USD, the price could quickly rise to 120,000–150,000 USD in the near future and could even reach 250,000 USD if more people and institutions start using BTC.
BTC is waiting for a signal
Gold reached a new peak of 121 million per tael at the end of April and then slightly adjusted to 99 million. Meanwhile, BTC has remained almost stagnant since the beginning of the year, only rising about 0.8%.
But many technical analyses show that BTC often follows gold by one step. If gold establishes a sustainable upward trend, BTC could surge towards the 155,000 USD mark, especially when the market breaks out of the current accumulation zone.
Source: Theblock101.com