Bitcoin price is surging in lockstep with gold as the precious metal hits a new historic high, suggesting investors are preparing for stock market turmoil.
The price of gold has broken through a new all-time high, surpassing the significant level of $2,100 during the Asian session on Monday, Dec. 4. Meanwhile, Bitcoin has also surged above $41,000 for the first time in 19 months.
Bitcoin price breaks $40K…and $41K
Bitcoin has made a triumphant return to the $40,000 threshold, a figure unseen since the heights of April 2022. This included a swift 2% jump over 24 hours, marking a 19-month peak for the cryptocurrency.
What’s more, Bitcoin has now risen over 140% since the beginning of the year.
Insights from Matrixport’s research head, Markus Thielen, suggest an even brighter future. With historical trends of post-bear market bull cycles and upcoming Bitcoin halving events as a backdrop, projections place Bitcoin at over $60,000 by April next year and as high as $125,000 by the end of 2024.
Such predictions rest on the historic pattern of price increases preceding halving events, with an expected surge of over 200%.
“On the eve of a spot Bitcoin ETF”
The speculative winds are further fanned by the potential approval of a spot Bitcoin exchange-traded fund (ETF) in the United States.
With 13 bidders, including industry giants like BlackRock and Grayscale, the anticipation is building toward a decision by the Securities and Exchange Commission (SEC).
Bloomberg’s ETF analysts see a high probability of simultaneous approvals for all pending bids by Jan. 10, which would mark not only a new era of institutional participation and investment in Bitcoin, but likely a boost for BTC price as well.
“It’s very likely we are on the eve of a Bitcoin spot ETF,” commented Bitcoin analyst Willy Woo on X about the new highs in gold price. “The first commodity ETF was SPDR Gold Trust. It provided a simple way for investors to access gold in their portfolio.”
Woo added:
“When it launched, gold went on to an 8-year rally with no single down year between 2005 – 2012.”
Therefore, Bitcoin’s latest move above the psychological $40,000 level reflects bullish market sentiment fueled by the likely approval of a spot Bitcoin ETF in January and the prospect of regulatory advancements in general. Bitcoin’s halving event, meanwhile, is only expected to provide additional tailwinds for BTC price over the next five months.
Source: Cointelegraph.com
