Analyst Says Bitcoin (BTC) Could Repeat 1970s Gold Rallies – But There’s A Catch
A widely followed crypto analyst says Bitcoin (BTC) could follow in gold’s historic footsteps and spark a massive rally.
In a new video update, DataDash host Nicholas Merten tells his 515,000 YouTube subscribers that BTC could eventually reach a six-figure price tag, but notes that the royal crypto needs to fall further first.
“We may start to see an asset trade very similar to gold. I’m going to make the case today about how Bitcoin may very well be that asset, especially after going through a steady decline of 75% or so so far, and will likely to go through a decline of around 80 to 85% at a minimum…
After that, we may have truly green pastures for Bitcoin, from now on [to] charter into the six-figure territory that a lot of people have been talking about since the last bull market, toward $100,000, $200,000, you name it, when people start to lose faith in the base currency, the dollar is the world’s reserve currency.”
An 85% decline from Bitcoin’s all-time high of around $69,000 suggests a downside target of $10,000 per BTC.
Merten says that as inflation continues to ravage global markets, people will start to sour on fiat currencies, causing them to move their capital into Bitcoin, much like what happened in the 1970s with gold.
“If the Federal Reserve can’t lead the way in cooling inflation, if the Fed can’t do that, we’re going to lose faith in not just the dollar, we’re going to lose faith in the world’s choice of fiat currencies…
If there is no stability in the dollar, there will be a lot of global liquidity that will go somewhere, and that is exactly what happened with gold in the 70s.”
Bitcoin is changing hands at $20,006 at the time of writing, down 3% in the last 24 hours.
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Featured image: Shutterstock/macrowildlife/rick eppedio
