Bitcoin was targeting $12,000 on August 6 as a mainstream media commentator predicted the cryptocurrency would gain more than gold.
Data from price trackers on Thursday showed another bullish trading day for Bitcoin, which secured 24-hour profits of 2.9%.
At $11,770, BTC/USD had all but erased the effects of its precipitous fall last weekend, during which it fell from above $12,000 to $10,870 in a matter of minutes. Further upside, analysts predict, may be harder to sustain.
“Essentially new resistance hit here after breaking $11,300-11,400. Let’s see how it goes from here,” Michaël van de Poppe at the Amsterdam Stock Exchange summarized on Wednesday as BTC/USD circled $11,850.
Keiser on BTC price: “No resistance at $20,000”
Bullish tendencies persisted throughout cryptocurrency markets over the course of the week, with both Bitcoin and altcoins copying gold to continue rallying.
The precious metal sat at $2,048 on Thursday—its highest USD value on record and easily beating predictions from major analysts. Just a week ago, Citigroup predicted only a 30% chance of XAU/USD beating $2,000 this year.
Despite its impressive performance, however, gold will ultimately give way to Bitcoin’s even bigger rise, one of the cryptocurrency’s best-known proponents said.
“#Bitcoin moving higher as a safe haven play just like Gold,” RT Keiser Report host Max Keiser tweeted.
“Except it’s harder money than Gold, more scarce, and is playing catch-up in terms of valuation.”
Keiser was referring to the latent growth in Bitcoin which occurred months after gold’s consistent gains. In future, however, the tables will turn—and even all-time highs of $20,000 will pose no barrier for Bitcoin.
“The BTC-Gold spread will shrink along with the Silver-Gold spread,” Keiser continued.
“BTC will have BIGGEST % move (No resistance at $20k).”
Keiser has become synonymous with hyper-bullish Bitcoin price forecasts, with his mid-term target now standing at $400,000 per coin.
Fed may make gold “wildly bullish”
Closer to the present, however, he is not alone in predicting a rosy future for safe havens continuing. Speaking to CNBC this week, several analysts said they believed that monetary policy decisions by the United States Federal Reserve alone would serve to buoy gold further.
The Fed targeting an inflation rate of 2-4% would be “wildly bullish” for gold, Edward Yardeni, president of investment strategy firm Yardeni Research explained.
Yardeni added that the approach would end up making “real yields persistently lower, the dollar lower, volatility lower, credit spreads lower and equities higher.”
That would be only good news for Bitcoin under current circumstances. Correlation between the two assets has steadily increased, while the opposite is true for Bitcoin’s relationship to macro factors such as stocks.
Nonetheless, warnings remain that a fundamental chance in macro, similar to the crash that occurred in March, could easily impact Bitcoin’s performance.