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- Bitcoin’s price could follow gold’s trajectory, with analysts predicting a potential surge to $400K.
- Institutional demand, Federal Reserve rate cuts, and corporate adoption are key drivers for BTC’s future growth.
Just as a CNF update previously highlighted in January 2024, there were 4 economic factors that could drive Bitcoin sentiment. With Bitcoin consolidating around $95,000-$97,000, some traders believe the market has peaked, while others remain optimistic about significant price increases by 2025.
Analysts suggest that Bitcoin could follow gold’s trajectory and potentially reach $400,000 under the right conditions. A recent tweet by an anonymous trader with X account, @aspk32 shared:
Modeling Bitcoin’s price in US dollars doesn’t make a lot of sense when we know the Federal Reserve will continue to expand the money supply. One way to correct for this is to measure Bitcoin in units of gold ounces and drop dollars altogether.
Bitcoin Could Mirror Gold’s Path to $400K
The trader went on suggesting that Bitcoin’s price movements closely align with gold’s historical trends. By using a power law model comparing Bitcoin’s price to gold’s market cap, the analyst believes BTC could surge by 400%, pushing its value to $400,000.
Historically, Bitcoin has remained within a predictable range relative to this model, never exceeding a five-year deviation from the trendline. Currently, BTC sits near a one-year-ahead position, indicating more upside potential. The trader highlights:
When you look at Bitcoin’s market cap growth—the current price multiplied by the current supply, measured in gold ounces—it’s pretty clear that it follows a simple pattern. This pattern is easier to see in a log-log plot because it follows a straight line.
Furthermore, crypto mining firm Blockware Solutions also points to a similar price range. Their estimates put Bitcoin’s bearish price target at $150,000, a base case of $225,000, and a bullish scenario of $400,000—driven by macroeconomic factors.
Three Key Factors That Could Drive BTC Higher
Analysts have identified three major catalysts that could push Bitcoin to new highs: First, growing discussions about US states accumulating Bitcoin could spark institutional and governmental demand, tightening supply.
Second, potential rate cuts from the Federal Reserve could lead to increased capital inflows into Bitcoin as investors seek higher-yielding assets.
Third, major companies integrating Bitcoin into their balance sheets or payment systems could accelerate mainstream adoption, driving prices upward.
Lastly, as the Bitcoin Buy-Sell Ratio signals a potential breakout, at the time of writing, Bitcoin (BTC) is trading at $95,653, reflecting a 0.29% increase in the past day after a 1.59% decline in the past week. See BTC price chart below.
