Bitcoin (BTC) is aiming for a new milestone of $155,000, inspired by the trajectory of gold, according to a recent analysis. The trading and analytics account Cryptollica recently predicted that BTC/USD could mirror gold's performance to reach new all-time highs. Despite Bitcoin's recent underperformance compared to gold, with BTC/USD down 9.3% year-to-date while XAU/USD continues to hit record highs, analysts believe that Bitcoin may be gearing up for a significant rally.
The analysis suggests that Bitcoin is on the cusp of breaking out of a consolidatory wedge structure, paving the way for a swift ascent past six figures and potentially reaching $155,000. Cryptollica's bullish outlook is based on several potential tailwinds for Bitcoin, including a weakening US Dollar Index (DXY) and record levels of the global M2 money supply, factors that have historically fueled bull runs in the cryptocurrency market.
While Bitcoin has faced criticism for not matching gold’s recent performance, onchain analytics firm Glassnode highlighted the resilience of both assets amid the current macroeconomic turmoil. Despite the price performance disparity, Bitcoin and gold have shown strength as global neutral reserve assets. Gold has recently reached a new all-time high of $3,300, attracting investors seeking a safe haven asset, while Bitcoin, initially selling off to $75,000 alongside risk assets, has since recovered to $85,000.
Glassnode emphasized that both gold and Bitcoin are increasingly taking center stage as preferred assets during uncertain times. The firm noted that Bitcoin's drawdown from its all-time high remains modest at around 30%, highlighting the asset's resilience compared to past market events. During previous macroeconomic crises, Bitcoin has experienced more significant sell-offs, indicating a shift in investor sentiment towards the cryptocurrency during adverse conditions, such as the ongoing US-China trade war.
The analysis underscores the impressive performance of hard assets like gold and Bitcoin amid global economic uncertainties. These alternative assets are gaining prominence as investors seek refuge from market volatility and currency devaluation. The comparison between gold and Bitcoin's price movements showcases the growing importance of digital assets as a hedge against traditional financial instruments.
It is important to note that this analysis does not constitute investment advice. Investors should conduct their own research and consider their risk tolerance before making any financial decisions. As Bitcoin continues to evolve as a mainstream asset class, its correlation with traditional safe-haven assets like gold could shape its trajectory in the coming months.
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