What would Bitcoin be worth if the price of gold reached $5K?

The key takeaways:

• Bitcoin has outperformed the gold market historically, and more recently six-fold.

• Gold’s rise to $5,000 may be the catalyst for Bitcoin’s significant gains.

• Both assets are largely driven by the weakening US Dollar and increasing global liquidity.

Yardeni Research’s chief, among others, has been a vocal advocate of gold’s rise to $5,000 an ounce. Ed Yardeni A billionaire investor John Paulson.

Bitcoin Price: What can happen?BTC), touted as “digital goldIf the price of gold surges higher, will ” be repeated by many?

BTC’s price increased 6x when gold prices rallied

Bitcoin’s gains have historically been much greater than those of gold, when both markets are rising at the same time.

BTC prices increased approximately 110% between March 2020 and March 2022 during ultra-loose Federal Reserve monetary policy, while the price of gold only rose by 35.5%.

In the November 2022–November 2023 rally, coinciding with rising global money (M2) supplyBitcoin has risen by nearly six-fold, with a 150% increase in value.

Related: When gold price hits new highs, history shows ‘Bitcoin follows’ within 150 days — Analyst

A gold price increase of 50% from $3,265 up to $5,000 would be a gain of half. Bitcoin, should history repeat itself, could increase by 300%. This would mean that the price per BTC will be $285,000, which is a gain of 50%.

This is in line with the analyst’s apsk32. projected Bitcoin price target, which is based on a power law model normalized against gold’s market cap.

Gold boom will push Bitcoin toward $250K — veteran fund manager

Frank Holmes, the CEO of US Global Investors believes that gold will reach $6,000 in Trump’s presidency. He argues that bullion is lagging behind the surge in global M2 currency supply.

The gold price is expected to rise alongside central bank demand, and investors’ positioning will be underweight.

Holmes predicts that Bitcoin could break through its $97,000 supply overhang and climb to $120,000–$150,000 in the near term, with a longer-term potential of reaching $250,000 as adoption accelerates.

BTC may reach $155K in the event that gold’s lagged correlation remains.

The price of gold reached a record high in April at $3,500. It is up 33.35 percent year-todate. The price has risen slightly, reaching $3237 on May 5. Bitcoin, on the other hand, has only risen by 0.82% year-to-date.

Analysts and market watchers are among those who pay attention to the markets. CryptollicaBitcoin is known to follow gold’s behavior after a slight delay. This suggests that it may move up towards $155,000 if the current range of consolidation breaks.

Bitcoin’s drop of 30% from its previous record of $110,00 is a small one compared with past sales of more than 50%. The resilience of Bitcoin is a positive factor that could help it to play a role in the future alongside gold.

This article contains no investment recommendations or advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.