Gold rally pushes Bitcoin to ‘$644K equivalent’ after next halving, says VanEck

Gold rally pushes Bitcoin to ‘$644K equivalent’ after next halving, says VanEck

Gold broke another milestone on Monday, touching nearly $4,000, leading analysts to make bold predictions about Bitcoin’s future price. According to VanEck, the cryptocurrency could reach “half the market cap of gold” after the upcoming halving, which is scheduled for 2028, giving it the equivalent of about $644,000 for Bitcoin.

“We’re saying Bitcoin should reach half the market cap of gold after the next halving,” said Matthew Sigel, head of digital asset research at VanEck. Gold futures also topped $4,000 an ounce for the first time, which Sigel said implied equivalence.

Crypto analysts have long compared Bitcoin to gold. While Bitcoin has gained about 50 percent this year amid uncertainty over political developments, a weak dollar and trade tensions, gold has held its own. While gold has attracted traditional investors as a safe haven, some say younger investors are increasingly looking to Bitcoin as a store of value.

“About half of gold’s value reflects its use as a store of value. Younger consumers in emerging markets are favoring Bitcoin for that role,” Sigel said.

Jordi Visser described the dynamic in June as a growing distrust of the financial system among younger generations and their willingness to absorb more public spending, which could push Bitcoin’s price higher.

On the other hand, veteran trader Peter Brandt warns that gold could still rise significantly, even as it reaches new highs. Bitcoin surpassed $126,000 for the first time in its milestone on Monday, which some commentators attribute to investors’ hopes for another new high. Critics like Peter Schiff point out that Bitcoin is still far from reaching the highest levels of gold, and is therefore still in a “bear market” in their opinion.

However, analysts warn that as the price of gold rises, the lower limit of Bitcoin’s real value could also increase, and some estimate that its shift could be even more significant. With the growing interest in digital assets, the question remains when and if Bitcoin will actually reach the mentioned levels.

*This is not an investment recommendation.

The Coingarage Team