Bitcoin (BTC) could be sucked to $50,000 like a magnet if it continues to follow gold, a fresh analysis predicts.
In a Twitter update on January 26, popular trader and market commentator TechDev presented high new BTC price target linked to XAU/USD.
Gold, Bitcoin inverse dollar correlation ‘no question’
As the debate over how much Bitcoin will compete with gold remains, a bullish price is emerging.
For TechDev, the outlook is more optimistic than for many – Bitcoin could even crack the $50,000 mark.
“What if Bitcoin continues to follow Gold / DXY?” he asked.
An accompanying chart compared BTC/USD to gold against the US Dollar Index (DXY). The precious metal, TechDev suggested continuing a previous story, may be a first-rate Bitcoin in terms of its recovery.
As Cointelegraph reported, the correlation between gold and Bitcoin is now almost 100%.
“Beyond momentary reactions to geopolitical events… Do you think gold leads bitcoin for 4 years?” previous Twitter thread asked.
TechDev added that the idea “wasn’t a prediction. A legitimate question.”
“It would be interesting if it came to fruition. The inverse correlation of both assets to the dollar is without a doubt,” he concluded.
If Bitcoin continues to chase gold in relative terms, the result could be a game changer for bulls. XAU/USD is up 6.1% on the year – already well below BTC/USD at 39%, according to data from Cointelegraph Markets Pro and TradingView.
According to TechDev, Bitcoin now has a chance to pass not only $30,000, but even $50,000.
Analyst: Gold set for immediate huge business boost
Even gold bugs, traditionally far from allies of Bitcoin, are eyeing a new halcyon era for the metal’s own fortunes.
Related: Bitcoin faces ‘considerable danger’ from Fed in 2023 – Lyn Alden
Alasdair Macleod, head of research at Goldmoney, this week pointed to geopolitics in his forecast, predicting significant growth in gold-based trading in Russia, China and across Asia.
“Russia won’t make formal gold standard announcements because it doesn’t need to. Neither will China: instead it could reveal an increase in gold reserves,” part of Goldmoney an article released on January 26 read.
Macleod himself is not a fan of Bitcoin, with a dedicated article comparing it with gold as money from December flat predicting that the latter would win in a crisis.
“To assert its status as money, bitcoin will have to obey the laws of time preference. In other words, its current relationship with interest rates must change, so that rising interest rates reflecting the loss of its purchasing power from fiat currencies should be reflected in rising values for bitcoin,” he wrote
“We will not try to guess this future. But we can say with confidence that if the debasement of currencies accelerates, the relative value of gold will increase accordingly, while that of bitcoin may not.”
Other popular commentators were more complimentary, with Mike McGlone, senior macro strategist at Bloomberg Intelligence, often entertaining Bitcoin outperforming gold in the long term.
The views, thoughts and opinions expressed here are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.