• Van Eck Analysts Target Gold and Bitcoin Rise
• Bitcoin worth $4.8 million in the extreme scenario
• Gold forecast between $31,000 and $105,000
2021 has been a fruitful year for the crypto market. The oldest cryptocurrency Bitcoin reached an all-time high at around $69,000 and many new investors entered the market. But towards the end of the year, the disillusionment with the digital currency, in the wake of the war in Ukraine and high inflation rates since February, seems to have started to recover again, despite strong fluctuations.
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BTC between $1.3 and $4.8 million
But the bullish price targets of many crypto bulls – including star investor and ARK boss Cathie Wood, who believes Bitcoin is capable of jumping over US$1 million by 2030 – are currently out. of range, Bitcoin is currently trading at around US$39,500.
Nevertheless, in the current market situation, two Van Eck analysts spoke with a much more optimistic assessment of the crypto veteran. The Bitcoin price could hit $4.8 million, according to Van Eck fund managers Natalia Gurushina and Eric Fine in a client report cited by Kitco News. The prerequisite for this, however, is that Bitcoin replaces both the US dollar as a reserve currency and gold as a store of wealth.
Analysts used global money supply M0 and M2 to calculate the forecast. If they take the M0 global money supply as a base, analysts still offer a possible Bitcoin price of US$1.2 million.
The opinion of a colleague. Interesting analysis. https://t.co/Ua7vTqPU1w
-Jan van Eck (@JanvanEck3) March 31, 2022
More upside than gold
Fund managers have also made similar observations for gold, a precious metal. If gold is the only remaining store of wealth at the end of the day, the price of gold could soar as high as US$105,000 at its peak, experts say. With M0 money supply as the basis for calculation, Van Eck analysts still suggest a gold price of US$31,000, which at the current price level of around US$1,967 would be a sixteen-fold increase. of the price of gold. gold.
If you compare the potential of gold and bitcoin, you will notice that bitcoin’s is disproportionately higher than gold’s. Still, exports see the precious metal as an advantage, as central banks would likely prefer gold over bitcoin. “In our view, gold is the easiest for central banks right now,” the analysts said. “At the end of the day, the upside potential for gold and bitcoin is potentially dramatic. [ ] Precious metals are the original reserve asset, but cryptocurrencies are a possible complement/substitute/part.”
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