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Bitcoin (BTC) It crashed Yesterday, the price reached $100,000, reaching $104,088 on the Binance cryptocurrency exchange. This historic price action has led analysts at trading firm Bernstein to assert that Bitcoin is well-positioned to replace gold over the next decade.
Bernstein says bitcoin is poised to outperform gold over the next decade
In a Customer note Earlier today, Bernstein analysts, led by Gautam Chugani, expressed confidence that Bitcoin will eventually take over gold’s role as a trusted safe-haven asset. The memo stated:
We expect Bitcoin to emerge as the premier “store of value” asset of the new era to eventually replace gold over the next decade, and become a permanent part of institutional multi-asset allocation and the standard for corporate treasury management.
On a year-to-date basis, Bitcoin is up a staggering 141%. However, the lion’s share of these gains came after pro-crypto Republican candidate Donald Trump won the US presidential election in November.
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The cryptocurrency market has seen a surge in optimism following Trump’s victory, as the president-elect is expected to create a favorable regulatory environment for digital assets. Since November 4, the total cryptocurrency market capitalization has risen from $2.4 trillion to $3.9 trillion at the time of writing – a staggering 62.5% increase.
In the note, Bernstein expects Bitcoin to rise to $200,000 by late 2025. The trading company’s predictions are in line with those of Charles Edwards – founder of Capriole Investments – prediction BTC will likely double in value within weeks, as its relatively smaller market cap allows for faster price movements.
BTC adoption is the main driver behind its success
Bernstein’s bullish outlook was reinforced by DA Davidson analyst Jill Loria, who identified mainstream adoption as the key driver behind Bitcoin’s success. However, he warned that Bitcoin still has a “long way to go” before it is widely accepted as a medium of exchange and unit of account. Loria added:
Bitcoin’s current main application is as a store of value – a low-correlation asset that replaces gold as a hedge against declining economic stability.
While Bitcoin has yet to achieve widespread use as a currency, it has gained significant traction as a reliable asset class for corporate balance sheets. Recently, Hut 8, a leading cryptocurrency mining company, Announce Plans to create a strategic Bitcoin reserve.
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In November, a video sharing platform rumble She shared her plans to boost her Bitcoin holdings. At the same time, Bitcoin reserves on cryptocurrency exchanges are likely to decline addition To the scarcity of the supply of assets, thus pushing their price higher. At press time, Bitcoin is trading at $103,172, up 7.9% over the past 24 hours.
Featured image from Unsplash, chart from Tradingview.com