If gold reaches $5,000, what will the price of Bitcoin (BTC) be?

Source: Cointelegraph Original: "If gold reaches $5000, what would the price of Bitcoin (BTC) be?"

Key Points:

Bitcoin (BTC) has historically outperformed gold, recently performing six times better than gold.

The momentum of gold rising to $5,000 may create conditions for a significant increase in Bitcoin.

The weakening of the US dollar and the rise in global liquidity remain key driving factors for both assets.

Gold reaching $5,000 per ounce and higher has become the focal point of discussion among hard asset bulls, including Ed Yardeni, chief economist at Yardeni Research, and billionaire investor John Paulson.

But if precious metal prices continue to rise, how will the price of Bitcoin, known as "digital gold" by many investors, evolve?

Bitcoin has historically shown stronger growth performance in a market environment where it rises in sync with gold.

From March 2020 to March 2022, during the period of the Federal Reserve's ultra-loose monetary policy, the price of BTC soared by about 1,110%, while gold only rose by 35.5%.

During the market upcycle from November 2022 to November 2023, alongside the increase in global money supply (M2), the price of gold rose by approximately 25%, while Bitcoin achieved a strong growth of 150%, showcasing an exceptional performance nearly six times that of gold.

If gold rises from its current price of about $3,265 to $5,000, it will achieve a 50% increase. Based on this inference, if historical patterns repeat, the price of Bitcoin is expected to achieve a 300% growth, reaching a new high of $285,000 per coin.

This prediction is in line with the Bitcoin price target derived by analyst apsk32 based on the power law model, standardized against the market capitalization of gold.

Frank Holmes, CEO of US Global Investors, predicts that gold prices will rise to $6,000 during President Trump's term. He pointed out that gold prices have consistently lagged behind the significant growth of the global M2 money supply.

He associates this bold goal with Trump's tariff policies, believing that these policies could lead to a depreciation of the dollar by about 25%, while strong central bank demand and insufficient investor allocation will together enhance the investment appeal of gold.

Holmes predicts that Bitcoin (BTC) is expected to break through the supply resistance level of $97,000, climbing to the range of $120,000-$150,000 in the short term, while its long-term value potential could reach $250,000 as adoption rates accelerate.

At the end of April, the price of gold reached a historic high of $3,500, with an increase of 33.35% year-to-date. As of May 5, the gold price has slightly adjusted to $3,237. In contrast, Bitcoin's increase since the beginning of the year is only 0.82%.

Multiple market analysts, including the analyst Cryptollica, have noted that Bitcoin has historically followed a pattern of lagging behind gold for a certain period. This suggests that if Bitcoin breaks through the current consolidation range, it may advance towards the $155,000 price level.

The phenomenon of Bitcoin retracing 30% from its historical high of about $110,000 appears relatively mild compared to past scenarios where there were large-scale sell-offs exceeding 50%. This market resilience not only reinforces Bitcoin's role as a safe-haven asset alongside gold but also increases the likelihood that Bitcoin could follow gold's upward trend when the market environment improves.

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