The popularity of Gold and Bitcoin as a store of value is growing again
Gold will rise to $2,500, and Bitcoin will rise to $45,000 by 2023. OctaFX analysts explore the reasons behind the end of the crypto winter and the increase in demand for gold.
As the capital markets revive in late summer, investors closely monitor market leaders like BTC and gold, seeking to decipher the market’s trajectory. OctaFX experts delve into the crypto market’s resurgence and the growing allure of gold.
Bitcoin Regains Momentum
Between November 2021 and December 2022, Bitcoin’s valuation significantly dropped, marking the phase as the ‘crypto winter.’ However, 2023 has seen a promising turnaround, with Bitcoin’s value surging from $16,500 to a commendable $29,200 hinting after this slump. CoinGecko’s report contrasts Bitcoin’s impressive 6.9% growth in the second quarter of 2023 to the overall crypto market’s modest 0.14% uptick. The waning interest in NFTs and stablecoins further strengthens the argument of the crypto winter’s end.
Bitcoin’s Constant Thrust Forward
Bitcoin’s alternative stance to traditional currency catalyzed its initial growth. Yet, investors’ perspective broadened as they began to view it as a value store, paralleling it to gold and a counterbalance to the US dollar. OctaFX’s analyst, Kar Yong Ang, posits a potential BTC growth linked to the US Fed’s movements. A key rate cut could propel Bitcoin towards the $45,000 mark, while stable rates might limit its growth to $30,000 by 2023’s end.
Gold’s Rocky Ride
Despite touching a record high of $2075 in August 2020, gold faced challenges surpassing this benchmark in subsequent attempts. A critical factor behind gold’s recent price fluctuations is the 64% drop in net purchases by central banks in Q2 2023, mainly attributed to Turkey’s Central Bank’s gold sales. Kar Yong Ang believes these sales are tactical, and gold’s upward trend remains intact for 2023. Falling US dollar value and declining interest rates are further bolstering gold’s allure, potentially pushing its price to a staggering $2,500.
Decoding the Future
Investors are keen on the Fed’s decisions to gauge the potential of gold and Bitcoin. The dollar’s strength is inversely proportional to Bitcoin and gold’s attractiveness. A rate cut by the Fed could signify a bullish phase for Bitcoin and gold, pushing their values to $45,000 and $2,500, respectively. Yet, a neutral stance, which seems probable, would see gold’s value crossing $2,000 and Bitcoin surpassing $30,000. The pivotal factor influencing these trajectories would be the FOMC decision on 20 September 2023.
Established in 2011, OctaFX is a global broker offering premium online trading services. Serving clients across 180 countries with over 42 million trading accounts, OctaFX equips its investors with educational resources and analytical tools. Besides providing financial services, OctaFX actively engages in humanitarian projects, backing education and immediate relief operations. Their dedication to excellence is evident in their accolades, including the ‘Best Online Broker Global 2022’ by World Business Outlook and ‘Best Global Broker Asia 2022’ by International Business Magazine.