Veteran analyst Peter Brandt has made a bold prediction that is generating a lot of interest in the cryptocurrency world: by 2025, the price of bitcoin should raise by 400% against gold.

He believes that based on the market patterns observed so far, Bitcoin could rise to the equivalent of approximately 123 ounces of gold.

This potential rally comes on the heels of the general price forecast, with Bitcoin likely to surge 65% over the next three months and almost 100% over the next six months, according to data from CoinCheckup. Over the next year, a 130% raise is estimated, meaning confidence in Bitcoin’s upward movement is quite mighty.

There’s never been a better time for investors to ponder this question: Will Bitcoin be able to rise above gold’s iconic status as the primary store of value? Never mind that the cryptocurrency market can’t resist their bold predictions; a confluence of key factors seems to predict Bitcoin’s triumph over gold in the coming years.

When I look at the Bitcoin/Gold ratio chart, I see it like this: $GC_G $BTC $BTCXAU
1. Continuation of the inverted H&S pattern, neckline 32.5 to 1
2. Left shoulder low at 14.2 to 1
3. Right arm forming a flag
4. Can drop to high teens to 1
5. Goal 123 to 1 photo: twitter.com/VKvsDqwkuU

— Peter Brandt (@PeterLBrandt) September 21, 2024

Institutional acceptance is sanguine

A significant reason why Bitcoin is likely to skyrocket soon is the growing institutional investment. Major financial firms and even governments have begun to view Bitcoin as a store of value similar to venerable inflation hedges like gold. Such institutional support will be key in driving the price of Bitcoin even higher as capital continues to pour into the market in ever-increasing amounts.

But perhaps most importantly, decentralized finance has opened up fresh employ cases for Bitcoin beyond its role as a store of value. By incorporating core cryptocurrencies into the DeFi ecosystem, investors can leverage their Bitcoin positions in ways that gold simply can’t.

According to Titan of Crypto, another respected voice in the cryptocurrency community, Bitcoin’s unique position in DeFi will only strengthen its value against time-honored assets like gold.

Gold Rise Could Augment Bitcoin Value

Interestingly, the predicted rise in gold prices may indirectly benefit Bitcoin. gold hitting fresh record highs, bolstering the narrative of precious metals as a hedge against economic turmoil.

However, this makes Bitcoin a more functional option given its digital nature and growing utility in decentralized finance. Investors looking to diversify may see Bitcoin as a way to gain exposure to both a safe-haven asset and the rapidly growing digital economy.

According to Wall Street investment banks, gold is likely to exceed $2,700 as 2025 progresses, thanks to expected interest rate cuts by the Federal Reserve. If Bitcoin continues its current trend, its price could rise against gold, perhaps reaching the 123-ounce threshold.

How does it feel from an investors perspective?

The implications of this prediction are significant for investors. Those who own Bitcoin will see significant rewards if the price of the alpha coin increases by 400% against the popular yellow metal.

Investors need to exercise caution when considering this opportunity, even though the long-term outlook for Bitcoin remains bullish, especially in lithe of a projected 132% price raise over the next year.

Overall, the cryptocurrency landscape is evolving rapidly, and Bitcoin’s role as a store of value could far surpass gold in the coming years. Investors should keep a close eye on both assets as economic conditions change and markets react to global events.

Featured image from Asia Times, chart from TradingView