After gold reached a new all-time high of $4,200 for the first time in history, crypto analysts have expressed optimism that the money from gold will eventually flow into Bitcoin.
Crypto asset manager Bitwise has confirmed this, stating in data shared on 21 October that just 3-4% of the money in gold could help Bitcoin double its current price.
Huge potential for crypto
Gold has rallied significantly this year, reaching $4,000 for the first time in its history, and also hitting the all-time high of $4,200.
Based on history, this gold rally will eventually turn around and the money will flow into Bitcoin, which the crypto space is eagerly expecting.
It is remarkable though, that only a tiny percentage of gold’s $29.75 trillion market cap is required to bring a 100% rally to Bitcoin from the current price.
Bitwise’s data shows that just 4% of the market cap can raise the price to $215,000, meaning Bitcoin could potentially see more than that because more money may come in than 4%.
Meanwhile, gold price is still rising, currently sitting at $4,261 an ounce, meaning even less of it could be required to bring phenomenal growth to Bitcoin.
After the rally for gold comes to an end, Bitcoin investors can start to see the effect as smart money begins to flow into Bitcoin, initiating its rally.
Bitcoin’s current state
At the moment, Bitcoin is just recovering from the latest correction that brought the price down to $107,000, and is now trading at $108,572 at the time of writing this report.
Whether or not the recovery will be sustained remains to be seen because several of them have been invalidated in the last few weeks.
One thing is for sure though, when money begins flowing from gold into the top coin, it will be evident.
What do you think?
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