Gold reached a new record price of $ 2,940 (USD) for an ounce yesterday, which predicts bitcoin (BTC) expectations among those who expect their behavior to continue.
According to the research company, Stony Chambers, There is an interesting relationship between Bitcoin and gold prices Since 2018. It stands out in a new report that BTC’s price usually follows the trend of precious metal, with a few months or a year of delay.
«The real patterns in the intermittent action of the price are so closely aligned that I think this should be seriously discussed and considered,» the firm emphasizes.
According to this analysis, Bitcoin is currently in the consolidation stage that gold had almost a year agoas stated in the following graph.
Bitcoin is a purchase opportunity now, according to Stony Chambers
«Because gold had an appreciation of more than 22% from that point, it is possible that BTC rebounds between 50% and 80% from the current levels, placing the price of BTC above the USD 144,000,» says Stony Chambers .
The forecast It is based on the late correlation that is usually between these assets and the greatest volatility that Bitcoin usually experiences. «When we observe some of the transitions between the main points, the BTC price action is much more exaggerated than the action of gold price,» he says.
Therefore, according to this forecast, underlines the specialist company that BTC is currently a purchase opportunity.
Now, the question is what this phenomenon is causing. Why does Bitcoin usually follow the price of gold? Stony Chambers presents a theory in this regard related to global Fíat M2 liquidity, an economic indicator that measures money in cash and other financial instruments.
The theory says that when the price of gold rises, banks can use it as a guarantee to lend more money, which slowly increases the global m2 liquidity in the economy. Bitcoin is the most correlated asset with the increase in this indicator, even above that the main stock market rates (as the following graph exhibits), which explains its delay price increase.
The firm also points out that «Bitcoin is sometimes called digital gold due to its shortage», which can promote this pattern. As with the metal, BTC has a limited supply in the worldwhich facilitates its assessment of purchases by simple supply and demand law. That is where such a concept arises.
Anyway, from its perspective, this relationship is not a convincing reason to take positions in Bitcoin. Although, he does see an investment opportunity for other reasons. «BTC is a ‘purchase’ based on regulatory, technical, adoption and macroeconomic situation,» he says.
“With the introduction of the ETF in cash, the options, the update of the FASB treatment of the digital assets and now the repeal of the SAB 121, the future seems extremely bright for BTC from a regulatory perspective. With the growth of BTC Treasury bonds as a corporate strategy, the future seems brilliant from the perspective of adoption. With the development of other Bitcoin protocols, including layer 2 escalation solutions, the future seems brilliant from a technical and utility perspective. With the growth of hashrate, the future seems brilliant from the point of view of security and decentralization. Finally, with the growth of US debt and the global liquidity of money Fíat M2, the future seems brilliant from a macroeconomic perspective. ”
Stony Chambers, investment company.
Given this scenario, to which the relationship of gold and bitcoin, the firm is added It remains optimistic about the price of digital gold.
The arrival of gold to a new price record occurred after a message from Jerome Powell, the president of the Federal Reserve (FED), Central Bank of the United States. He said to Congress, as Cryptonoticias reported, which «they have no trouble» in lowering interest rates, to which Bitcoin and US actions responded with a slight fall.