Bitcoin ETF to skyrocket the market to $38000 as Gold did?
This chart displays the similarities on the trading patterns of the historical price of Gold before and after its ETF approval to Bitcoin's historical price in anticipation for its ETF approval decision.
On March 28, 2003, the first Gold-backed ETF was introduced. The result was a +460% rise on Gold's price that reached $1920.80 on September 2011. Gold's pattern prior to the ETF launch looks very much like Bitcoin's current chart after its all time high near $20000. We see the same volatility runs as gold had in the 1980s. Both had a sharp decline of 65-70% following their all time highs. A key parameter to consider of course, is that Gold’s transition took place within a 20-year cycle, while Bitcoin's occurred within a year, with this fast pace attributed to demand and supply. The similarities are indeed impressive.
Assuming that Bitcoin's ETF is approved, market psychology may suggest that a similar pattern will be followed. This is translated into roughly $38000 in late 2019 (532% increase since February's lows).
It should be mentioned of course that we are talking about different market sizes. The value of all the Gold that's ever been mined exceeds $8 trillion. The value of all the Bitcoins that have ever been mined is $76 billion. This may indicate however Bitcoin's upside potential.
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On March 28, 2003, the first Gold-backed ETF was introduced. The result was a +460% rise on Gold's price that reached $1920.80 on September 2011. Gold's pattern prior to the ETF launch looks very much like Bitcoin's current chart after its all time high near $20000. We see the same volatility runs as gold had in the 1980s. Both had a sharp decline of 65-70% following their all time highs. A key parameter to consider of course, is that Gold’s transition took place within a 20-year cycle, while Bitcoin's occurred within a year, with this fast pace attributed to demand and supply. The similarities are indeed impressive.
Assuming that Bitcoin's ETF is approved, market psychology may suggest that a similar pattern will be followed. This is translated into roughly $38000 in late 2019 (532% increase since February's lows).
It should be mentioned of course that we are talking about different market sizes. The value of all the Gold that's ever been mined exceeds $8 trillion. The value of all the Bitcoins that have ever been mined is $76 billion. This may indicate however Bitcoin's upside potential.
** If you like our free content follow our profile (www.tradingview.com/u/InvestingScope) to get more daily ideas. **
Comments and likes are greatly appreciated.
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Over 65% accuracy on Private Signals Channel.
Over 15% return monthly on our Account Management Plan.
Account RECOVERY services.
Free Channel: t.me/investingscopeofficial