Bitcoin (BTC) prices are pumping as spot exchange-traded fund (ETF) hype ramps up sending the asset to an 18-month-high. Gold prices surged in the years following its first ETF approval, but will Bitcoin follow suit?
Bitcoin prices touched $35,000 during the Tuesday morning Asian trading session. Moreover, the massive move marks a 14% daily gain sending the asset to its highest price since May 2022.
Mirroring Gold Price Action?
The surge has been attributed to the hype and expectations surrounding a spot ETF approval. Unlike futures ETFs, a spot product would invest directly in the underlying asset adding to buying pressure.
Analysts have been looking back to November 2004 when the first spot gold ETF (SPDR Gold Shares) was listed on the New York Stock Exchange.
The fund allowed investors to gain exposure to the commodity without having to buy physical gold directly. The same applies to a spot BTC ETF. This will allow institutions to invest in the asset without having to set up a wallet or exchange account and buy it.
Gold prices rampaged on an eight-year bull run following the ETF listing, analysts observed.
Gold was trading at around $430/oz in November 2004, and it had doubled in price by the end of 2007. By the end of 2011, gold prices had surged more than 300% to reach $1,800/oz.
Gold is far less volatile than Bitcoin and price movements are slow and steady. However, if BTC mirrors this movement and surges a similar amount over the next couple of years it could top $120,000.
Gold prices are currently close to their peak prices at $1,977/oz, buoyed by geopolitical tensions in the Middle East. Comparatively, Bitcoin is still 50% down from its peak price almost two years ago.
Big Bitcoin Predictions
This week’s massive market move has spurred analysts into “price prediction mode.” Crypto analyst Mags predicted the breakout before the end of this year. Furthermore, a pullback below $30,000 has also been predicted in the next couple of months.
They predicted a new all-time high before the end of 2024 with more gains and new peaks being made in 2025.
After what has seemed like an endless crypto winter, the Bitcoin bulls finally have something to celebrate this week.
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