Bitcoin <> Gold Correlation: Bullish for Bitcoin? I’ve been diving deep into the relationship between Bitcoin and Gold, and based on my analysis, I’m setting a price target of $100,000 to $105,000 for Bitcoin over the next couple of months.
Why?
The correlation coefficient between BITSTAMP:BTCUSD and TVC:GOLD is 0.84, which indicates a strong, beautiful correlation.
As you can observe in the chart, Bitcoin and gold price movements converge over time, building on the current correlation.
This leaves us with 2 options:
a) Gold price drops to meet the recent BTC decline
b) BTC rises to meet gold's recent surge 👀
c) BTC and gold meet in the middle
Given the long-term trend and the adoption of Bitcoin by US institutions and the government, I see option B as the most likely to happen. In this case, then, I see Bitcoin getting somewhere close to $105,000 over the next few months. This can mean a 25% uptick in BTC, totally within normal BTC price ranges.