TLDR VanEck suggests Bitcoin could hit $644K if it reaches half of gold’s market cap. Bitcoin’s price might surge after 2024 halving, potentially hitting $644K. Gold’s all-time high suggests Bitcoin could reflect a similar value increase. VanEck forecasts Bitcoin’s market value rising alongside gold’s strong performance. Gold’s recent rally, reaching an all-time high of nearly [...] The post Gold’s Record High Implies Bitcoin Could Reach $644K, VanEck Predicts appeared first on CoinCentral.TLDR VanEck suggests Bitcoin could hit $644K if it reaches half of gold’s market cap. Bitcoin’s price might surge after 2024 halving, potentially hitting $644K. Gold’s all-time high suggests Bitcoin could reflect a similar value increase. VanEck forecasts Bitcoin’s market value rising alongside gold’s strong performance. Gold’s recent rally, reaching an all-time high of nearly [...] The post Gold’s Record High Implies Bitcoin Could Reach $644K, VanEck Predicts appeared first on CoinCentral.

Gold’s Record High Implies Bitcoin Could Reach $644K, VanEck Predicts

TLDR

  • VanEck suggests Bitcoin could hit $644K if it reaches half of gold’s market cap.
  • Bitcoin’s price might surge after 2024 halving, potentially hitting $644K.
  • Gold’s all-time high suggests Bitcoin could reflect a similar value increase.
  • VanEck forecasts Bitcoin’s market value rising alongside gold’s strong performance.

Gold’s recent rally, reaching an all-time high of nearly $4,000 per ounce, has led to new predictions for Bitcoin’s potential value. According to analysts from VanEck, if Bitcoin were to reflect a portion of gold’s market cap, it could be valued at around $644,000 in “equivalent value.” This assessment points to a possible surge for Bitcoin as its next halving event approaches in 2024.

Gold’s Surge and Bitcoin’s Potential Value

Gold’s recent performance has sparked significant interest in Bitcoin’s future. As gold futures hit a record high above $4,000 per ounce, analysts are predicting that Bitcoin could reach a similar rise in value. Matthew Sigel, the head of digital asset research at VanEck, explained that if Bitcoin were to mirror gold’s market capitalization, its price could increase to $644,000.

Sigel has noted that Bitcoin’s next halving event, scheduled for 2024, could serve as a catalyst for such a price increase. The halving, which occurs approximately every four years, reduces the reward miners receive for verifying transactions. Historically, Bitcoin’s price has risen after previous halvings, which has led to optimistic predictions for the cryptocurrency.

Bitcoin and Gold: A Comparison of Safe-Haven Assets

Bitcoin and gold are often compared as stores of value, especially during times of economic uncertainty. Gold has long been seen as a safe-haven asset, especially during times of political instability or inflation. However, younger investors are increasingly turning to Bitcoin as an alternative to gold for storing value. Sigel emphasized that surveys show a growing preference for Bitcoin among younger generations in emerging markets.

This shift suggests that Bitcoin may continue to grow as a digital asset that serves the same purpose as gold. While gold has seen substantial growth this year, Bitcoin has also been gaining momentum, particularly as it approaches the halving. VanEck’s prediction aligns with a broader trend of digital assets becoming more appealing to a younger, tech-savvy demographic.

The Role of Economic Factors in Bitcoin’s Rise

Several economic factors are fueling optimism about Bitcoin’s future. The weakening US dollar and increasing uncertainty over political developments are influencing investors to seek alternatives to traditional assets like stocks and bonds. Bitcoin, often seen as a hedge against inflation, is gaining popularity as a potential store of value.

Analysts have pointed out that the rising price of gold reflects these broader economic trends, which could also benefit Bitcoin. As investors become more concerned about the stability of traditional financial systems, digital currencies like Bitcoin may become more attractive. This shift could lead to Bitcoin’s market cap growing substantially, bringing its price closer to the $644,000 prediction made by VanEck.

Bitcoin’s Performance Against Gold in 2024

Although Bitcoin has recently hit new all-time highs, there are varying opinions about its potential when measured against gold. Some analysts argue that Bitcoin’s current value still lags behind its performance in relation to gold. Peter Schiff, a well-known Bitcoin critic, pointed out that Bitcoin would need to rise to around $148,000 to match its previous record high when priced in gold.

However, Joe Consorti, the head of growth at Bitcoin custodian Theya, stated that the rise in gold prices has pushed Bitcoin’s “fair value floor” to $1.34 million. These differing viewpoints illustrate the uncertainty surrounding Bitcoin’s future price, even as gold continues to soar.

Despite the differences in opinion, the consensus among many analysts is that Bitcoin’s value could rise significantly if it starts to attract more investors looking for alternatives to gold. As the 2024 halving approaches, Bitcoin’s price may see substantial growth, driven by both its reduced supply and the growing interest from investors seeking a store of value.

The post Gold’s Record High Implies Bitcoin Could Reach $644K, VanEck Predicts appeared first on CoinCentral.

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