Bitcoin Recovers to $123,500; VanEck Predicts $644K BTC with Gold Surge
Bitcoin (BTC) regained momentum, reaching nearly $124,000 after a recent dip. It currently trades at $123,500, a 1.5% increase in 24 hours.
- Altcoins like Ethereum (ETH), Ripple's XRP (XRP), Solana (SOL), Dogecoin (DOGE), and Avalanche (AVAX) rose by 1%-3%.
- The CoinDesk 20 Index increased by 2%.
Crypto-related stocks saw gains, particularly among BTC miners:
- Cipher Mining (CIFR) and Bitfarms (BITF) increased by 11%-12%.
- CleanSpark (CLSK) and Hut 8 (HUT) rose by around 6%.
These gains are driven by optimism in artificial intelligence enhancing demand for computing power.
The Federal Reserve's September meeting minutes revealed expectations of interest rate cuts this year, though some officials opposed a cut in September due to inflation concerns.
Gold Leads the Debasement Trade
Gold continues its surge, surpassing $4,000, a 50% increase this year, fueled by government deficits and unstable bond markets.
- Japanese yields reached 17-year highs, pushing investors towards gold as a safe haven over risk assets like crypto.
Charlie Morris from ByteTree noted that gold's rise isn't purely speculative, indicating macroeconomic factors need to change for a bearish outlook on gold.
He suggested Bitcoin might gain traction once gold's rally cools, referencing Bitcoin's historical role in macro-driven risk rotations.
Matthew Sigel from VanEck reiterated that Bitcoin could capture half of gold's market size, potentially valuating BTC at $644,000, assuming its appeal as "digital gold" grows among younger generations.