Gold price after first ETF, will bitcoin follow suit?
Bitcoin (BTC) prices are rising on a spot exchange-traded fund (ETF) boost, sending the asset to an 18-month high. Gold prices have soared in the years since the first ETF was approved, but will bitcoin follow suit?
Bitcoin prices touched $35,000 during Tuesday morning's Asian trading session. In addition, this massive move represents a 14% daily gain, sending the asset to its highest price since May 2022.
Reflecting Gold Price Action?
The increase was driven by the hype and expectations surrounding the ETF approval. Unlike futures ETFs, a spot yield invests directly in the asset against buying pressure.
Analysts have been listing the first spot gold ETF (SPDR Gold Shares) on the New York Stock Exchange since November 2004.
The currency allowed investors to gain exposure to the commodity without buying physical gold directly. The same goes for the spot BTC ETF. This allows institutions to invest without setting up a wallet or switching accounts.
Following the ETF listing, gold prices broke an eight-year bull run, analysts noted.
Gold was trading around $430 in November 2004, and by the end of 2007 the price had doubled. By the end of 2011, the price of gold had risen more than 300% to reach $1,800.
Read more: How to buy Bitcoin (BTC) and everything you need to know
Gold is much less volatile than Bitcoin and price movements are slow and steady. However, if BTC reflects this movement and gains the same amount over the next two years, it could rise above $120,000.
Gold prices are currently near their all-time high of $1,977/oz, weighed down by geopolitical tensions in the Middle East. Comparatively, Bitcoin is still down 50% from its peak two years ago.
Big Bitcoin predictions
This week's massive market moves have sent analysts into “price prediction mode.” Crypto analyst Mags predicted it would happen later this year. Additionally, a return of less than $30,000 is predicted for the next two months as well.
This will be the last zone of accumulation before the start of a major crash, according to the analyst, it will reach up to $50,000 before reducing the asset in half.
A new all-time high is predicted before the end of 2024, and there are further gains and new highs in 2025.
After a seemingly endless crypto winter, Bitcoin bulls finally have something to celebrate this week.
Disclaimer
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