• According to Capriole Investments, the coming decade could be Bitcoin’s time to match the explosive breakouts of gold in the 1970s.
• Capriole believes that 2023 will be a bright year for Bitcoin as a reserve asset due to its comparison to gold’s size in the 1970s and the potential for big moves through a decade of inflation and high interest rates.
• If Bitcoin is able to match gold’s breakouts, the price could surge past $600K.
The coming decade could be a pivotal time for Bitcoin (BTC) – with many speculating that the world’s leading cryptocurrency could surpass the breakouts of gold from the 1970s. This is according to the latest edition of the Capriole Newsletter, a financial circular from research and trading firm Capriole Investments.
Despite the current bearish sentiment in the crypto markets, with BTC price action flagging at nearly 80% below its latest all-time high, Capriole believes that 2023 will be a bright year for Bitcoin as a reserve asset. This is due to the world economy’s financial history of the past century, and in particular, the United States after the dollar deanchored from gold completely in 1971.
At the time, gold was the world’s premier safe haven and saw “huge” gains during the decade. Now, fifty years later, Capriole believes it is Bitcoin’s turn to replicate this success. This is because gold was much smaller in the 1970s than what Bitcoin is today, giving it the capacity to make big moves through a decade of inflation and high interest rates.
Accompanying charts in the Capriole Newsletter underscore gold’s potential to repeat its 70s behavior. This includes a “cup and handle” chart structure playing out since 2010. If Bitcoin is able to match gold’s breakouts, the price could surge past $600K, according to Capriole.
It remains to be seen what the future holds for Bitcoin, and whether or not it will be able to replicate gold’s success from the 1970s. However, the signs are certainly there for the cryptocurrency to make some big moves this decade. With this in mind, investors may want to keep a close eye on the BTC market in the months and years to come.