According to a recent analysis, Bitcoin (BTC) could gravitate towards the $50,000 mark if it continues to mirror the movements of gold.
Popular trader and market commentator TechDev shared a bullish prediction on Twitter on Jan. 26, linking a lofty BTC price target to the XAU/USD correlation.
Strong Relationship Between Gold, Bitcoin, and the Dollar
The ongoing discussion about Bitcoin’s competition with gold has led to optimistic views on the price trajectory.
TechDev’s outlook is particularly positive, suggesting that Bitcoin might surpass the $50,000 milestone if it maintains its correlation with Gold/DXY.
By comparing the BTC/USD chart with gold and the U.S. Dollar Index (DXY), TechDev indicated that gold could be leading Bitcoin in terms of recovery, with a correlation close to 100%.
The correlation between gold and Bitcoin has been robust, with both assets showing an inverse correlation to the dollar. This dynamic could have significant implications for Bitcoin’s price movement, potentially propelling it above $50,000.
Gold Expected to Experience a Surge in Trade Activity
Even traditional gold enthusiasts are anticipating a positive trend for the precious metal, with Alasdair Macleod, head of research at Goldmoney, forecasting a substantial increase in gold-based trade in regions like Russia, China, and Asia.
Macleod, who is cautious about Bitcoin, emphasized the importance of gold in times of economic crises, suggesting that gold’s value could outperform Bitcoin if currency debasement accelerates.
While some analysts like Mike McGlone from Bloomberg Intelligence see Bitcoin eventually outperforming gold in the long run, the debate between gold and Bitcoin as safe-haven assets continues.
Overall, the interplay between gold, Bitcoin, and the dollar is expected to have a significant impact on the future price movements of these assets.
The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the views of Cointelegraph.
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