Bitcoin (EXANTE: Bitcoin) is on track to become a digital version of gold, Bloomberg's analysts wrote in a monthly crypto outlook. If bitcoin wants to replace gold in the long run, it should simply maintain what it has been doing over the last few years: appreciating in price and maturing.
Most notably, that BTC's volatility ratio trough at about 2.3x three years ago coincided with the bitcoin-to-gold price ratio jumping to 15x at the end of 2017 from 1x, the analysts emphasize.
Despite the fact that bitcoin is currently trading near its all-time high, the cryptocurrency's 260-day volatility akin to the 2017 pattern. If the volatility repeats past patterns, the largest cryptocurrency by market capitalization may see 100x resistance vs. the per-ounce price of gold as the next key resistance level.
Earlier in January, One River Asset Management Founder, Eric Peters, said that bitcoin's volatility will likely decrease as the price of the cryptocurrency hits new heights. Particularly, Peters thinks new investors with strong hands will keep BTC's price more stable with the adoption.
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