How The Gold Rally Has Been Mirroring Bitcoin’s Momentum Over Time

Analysts from Deutsche Bank and other financial institutions are drawing increasing parallels between the recent rallies in gold and Bitcoin, with both assets benefiting from macroeconomic uncertainty. Bitcoin’s growing role as a digital store of value has led to predictions of significant long-term upside, especially as younger investors shift capital from traditional safe havens like gold.

Deutsche Bank Highlights Growing Parallels Between Gold and Bitcoin

A recent report from Deutsche Bank outlines strong similarities in how gold and Bitcoin are being perceived in today’s financial landscape. The bank noted that Bitcoin’s performance in 2024 has mirrored gold’s rally, with both assets reaching new highs amid increasing economic uncertainty and geopolitical tensions.

Gold recently surpassed $4,000 per ounce for the first time, while Bitcoin has also marked a series of new highs. Deutsche Bank analysts highlighted that central banks may begin accumulating Bitcoin alongside gold as a reserve asset, projecting potential BTC adoption by central banks by 2030. Bitcoin’s rising appeal as a hedge against debasement has earned it the moniker “digital gold.”

Economist Holger Zschaepitz noted that Bitcoin has surpassed $125,000—a milestone in what he described as the “debasement trade” strategy, where investors seek refuge from currency depreciation. Meanwhile, crypto analyst Merlijn observed a pattern where Bitcoin trails gold during macro breakouts, often accelerating afterward. Merlijn predicts Bitcoin could surge to $160,000 if historical trends hold. This perspective aligns with JPMorgan’s bullish outlook, which sees BTC potentially hitting $165,000 as it remains undervalued compared to gold.

VanEck Analyst Predicts Bitcoin Could Reach $644,000

Matthew Sigel, Head of Digital Assets Research at VanEck, suggested that Bitcoin could reach half of gold’s market capitalization following its next halving in 2028. Based on gold’s current $27 trillion valuation, Sigel projects Bitcoin could climb as high as $644,000.

According to Sigel, Bitcoin is gaining prominence as a store of value, particularly among younger investors in emerging markets. He noted that approximately 50% of gold’s market cap is attributed to its role as a store of value, making Bitcoin a viable alternative. Echoing this sentiment, SkyBridge founder Anthony Scaramucci stated that as younger generations rise into positions of financial influence, capital could shift substantially from gold toward BTC.

Market Impact and Outlook

The narrative comparing Bitcoin to gold has gained traction among institutional investors and policymakers. As macroeconomic uncertainty persists—from inflationary pressures to geopolitical unrest—Bitcoin is increasingly viewed as a digital hedge asset.

With analysts forecasting continued convergence between Bitcoin and gold in both price and function, traders are closely monitoring global monetary policy shifts and investor sentiment for signals of what’s next for the crypto market’s top asset.

Bitcoin Price Update

At the time of writing, Bitcoin is trading around $112,500, reflecting a short-term pullback over the past 24 hours, according to CoinMarketCap.