Gold Price Forecast: Bitcoin Investors to Turn to Gold

The comments below are an edited and abridged synopsis of an article by Christopher Aaron

It seems that Bitcoin and cryptocurrency investors are about to shift their investment strategy toward precious metals, and that change should cause a notable influx of capital into the gold and silver sectors.

Gold Price Forecast: Bitcoin Investors to Turn to Gold - BullionBuzz - Nick's Top Six
Bitcoin blockchain E-commerce concept on digital Screen

The trend in the ratio between Bitcoin and gold rose steadily in Bitcoin’s favour over the last 8 years, but now it appears ready to favour gold again. As cryptocurrencies may be seen as competing anti-fiat alternatives to precious metals, this shift may represent an important current for the metals market.

This article looks at the technical and fundamental setup that may cause cryptocurrency investors to become precious metals investors, with discussions of Bitcoin targeting $17,000, the Bitcoin-to-gold ratio; why Bitcoin will correct; and the takeaway on gold and Bitcoin.

“We have evidence that the Bitcoin market is set for a further decline over the remainder of 2022. Any relief rally should be used to exit positions, especially if overleveraged.”

“A further decline in Bitcoin will cause its ratio with gold to break down from an 8-year rising trend. This will be the first time gold consistently outperforms Bitcoin since 2014.”

“The resultant psychology shift as cryptocurrency investors begin to flood back into precious metals should see the gold and silver markets gain notable traction. Presently, valuations are extremely depressed in the gold mining sector, and this may change when crypto funds comes rushing in.”

“As investors, we want to position ahead of this trend change. By the time the change gains momentum, most of the move will be over.”

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