Analyst Says Bitcoin (BTC) Could Repeat Gold's Rallies in the 1970s - But There's a Catch
A widely followed crypto analyst says that leading digital asset Bitcoin (BTC) could follow in the historic footsteps of gold and spark a major rally.
In a new video update, DataDash host Nicholas Merten said his 515,000 YouTube subscribers BTC could eventually hit a six-figure price but noted that the crypto king has more to lose.
“We could start to see an asset transaction very similar to gold. I will make today's case for how Bitcoin could very well become that asset, especially after experiencing a steady drop of 75% or so far, and will likely experience a drop of around 80 to 85% at a minimum…
Then we could have really green pastures for Bitcoin, starting [to] break into the six-digit territory that many have been talking about since the previous bull market, towards $100,000, $200,000, you name it, as people started to lose faith in the base currency, the dollar was the world reserve currency.”
An 85% drop 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 wreak havoc on global markets, people will start to get bored with fiat currency, prompting them to shift capital into Bitcoin, just like what happened in the 1970s with yellow.
“If the Federal Reserve cannot take the lead in cooling down inflation, if the Federal Reserve cannot do that, we will lose confidence not only in the dollar, we will lose confidence in the dollar. many fiat currencies in the world…
If the dollar had no stability, there would be a lot of global liquidity that would want to go somewhere, and that's exactly what happened to gold in the 70s”.
Bitcoin is changing hands at $20,006 at press time, down 3% in the past 24 hours.
Aug 28, 2022