Gold anticipates an explosive climb for Bitcoin

According to the Brazilian investment company, Hashdex, Bitcoin (BTC) could be following the same path as gold as a value reserve asset in the middle of a volatile macroeconomic context.

In a recent report, the company emphasizes that “as digital assets continue to gain global legitimacy, Bitcoin becomes positioned next to gold as a modern alternative of value reserve.”

Hashdex points out that “BTC could be about a strong valorization in the coming months, as investors seek resilient and decentralized protections against systemic risks.”

Since gold has a significantly greater market capitalization, it is reasonable to expect fundamental factors, such as the establishment of a strategic BTC reserve in the United States and institutional adoption, may have a pronounced impact on the prices of Bitcointhe firm underlines.

With a capitalization of USD 22,500 billion, gold is the most capital asset in the world. Meanwhile, Bitcoin has a USD 1,864 billion capitalization and the USD 1,862 billion silver.

Gold reached a new historical maximum price of USD 3,500 dollars last week. Meanwhile, Bitcoin has rebounded to USD 95,000, its maximum in two months, which leaves it 10% below its USD 109,000 record marked three months ago.

According to HASHDEX, the metal has been driven in the face of the growing demand for protection assets, in an environment characterized by inflationary concerns, macroeconomic uncertainty and weakness of the US dollar.

According to the firm, Investors seek value reserves against riskswhat has resulted in large capital entries to Gold and Bitcoin. This trend reflected in these assets a strong pricing impulse amid the growing global instability since 2023, he says.

More institutions and states could invest in Bitcoin as digital gold

In addition to this context, HASHDEX adds as a driving factor for Bitcoin The flexibility of the rules related to cryptocurrencies applicable to banks. This could “facilitate greater institutional adoption of digital assets on a global scale, as cryptocurrencies integrate further into the traditional financial system,” he says.

In addition, the Arizona Senate project, which seeks to establish a reserve of digital assets Managed by the State, it was approved by a Chamber Committee. According to Hashdex, this advance could “serve as a precedent for other states to follow the same path.”

In this sense, he concludes that “the strong performance of gold may be a sign that other assets with value reserve characteristics, such as Bitcoin, can also gain impulse shortly, since it is still behind gold in this movement.”

Bitcoin correlates with gold

According to Pearson’s correlation coefficient, The price of Bitcoin has been correlating to gold since March. This metric reached 0.54 points, approaching the annual maximum of 0.73, as cryptootics reported.

Meanwhile, as seen below, Bitcoin has been losing correlation with the main market actions, such as Nasdaq Composite (NDX) and S&P 500 (SPX) indices.

Without going any further, Only so far in April, Bitcoin and Gold registered a 15% and 5% rise, respectivelyshowing higher performance than the NDX that rose 1.3% and the SPX that declined 1%.

This behavior coincides with Bitcoin’s growing perception as a value shelter comparable to gold. Although, due to its lower capitalization, it has a higher price volatility, which explains its highest ups or declines.

Various characteristics make Bitcoin attractive as a shelter asset. It is scarce, since its supply is limited to 21 million units. It is also resistant to censorship, does not depend on governments or central banks, and allows global transfers without intermediaries. In addition, its network and mining work decentralized, which makes it more difficult to manipulate or interrupt.

This makes it seen as digital gold or even an improved version of the precious metal by factors such as its scheduled limited emission and ease of digitally storing and transferring. However, due to its high volatility, it is still traded as a risk asset, so it is crucial to consider its possible movement scenarios before operating it.