InvestAnswers thinks that Bitcoin, the most valuable crypto asset by market cap, is about to surpass gold. Look forward to a thrilling ascent in the months ahead! The bullish prediction follows Bitcoin’s recent performance as the market continues to trend largely against gold.
The host of InvestAnswers, a YouTube channel with 565,000 subscribers, anticipates Bitcoin will begin outpacing gold within the next six months. He argues gold is now overbought and overdue for a mean-reversion.
Gold just had a parabolic rally going all the way up to $3,500. At the time of writing, gold is trading around $3,283 per ounce. At the same time, Bitcoin is changing hands at $93,870, down just over 1% in the last 24 hours. Gold was down slightly on the day as well.
The analyst’s judgment rests on the assumption that Bitcoin will increase in value compared with gold. He further adds that Bitcoin and gold prices exhibit a nonpersistent correlation.
The correlation between Bitcoin and gold exists less than half the time. This occasional negative correlation means that different factors can push the price of each asset in its own direction.
Bitcoin’s dominance over all other cryptocurrencies as the flagship crypto provides it an upper hand. Additionally, its significant market capitalization within the crypto ecosystem offers a robust platform for future expansion.
Their latest prediction discussed the store of value bitcoin argument, like gold. Not surprisingly, gold has historically been considered a safe haven asset. As a few analysts have argued, Bitcoin offers the same, if not more secure, qualities.
