The price of Bitcoin may follow the fractal of gold during the 1970s – finally inflation in the United States got out of control.
What followed was a more than 700% rally in the precious metal. Will the same happen in digital gold?
Bitcoin Follows Fractal Price From 1970s Gold
Over the past week, both Bitcoin and gold have rallied in the wake of open bank spreads and failures. Gold is up about 10% on the year, while BTC is almost back 70%.
With bank stocks collapsing and cryptocurrencies at the top with rising market caps, BTC prices in banks are making some of the most amazing and surprising price charts you can imagine.
The shock and awe could continue, if the fractal BTC following gold from the 1970s continues to unfold. In the 1970s, the United States inflation rate reached more than 10% and double digits were not uncommon in the early 80s.
During the worst, gold continued to rise more than 750% from $100 to $850 per troy ounce of the precious metal. Now the same price fractal has the potential to return in Bitcoin, and so does rising inflation.
Bitcoin today versus 1970s gold | BTCUSD on TradingView.com
The Fastest Horse in the Race Against Inflation
During the 2020 bull run, billionaire investor and philanthropist Paul Tudor Jones famously said that Bitcoin could be the fastest horse in the race against inflation, referencing 1970s gold.
Inflation first reached double digits in 1974, just three years after US President Richard Nixon announced that the United States would no longer be convertible from dollars to gold at a fixed price of $35 an ounce.
Gold went parabolic, first experiencing a pullback in 1974 when inflation became very hot. After a two-year correction, gold spent the next few years rallying more than 750%.
The price of Bitcoin also corrected hard when inflation first reared its head, but after two years it began to show durability. In the future, it could become the digital equivalent of gold in the 1970s, helping investors beat inflation or banking crises.
In the price fractal above, gold completed wave 5 after an extended flat correction, following the Elliott Wave Principle. In the commodity market, wave 5 tends to be extended. With BTC classified by the SEC and CFTC as a commodity, can crypto assets do the same?
If BTCUSD will follow the same path as the 750% return from the latest, it will eventually take Bitcoin over $132,000 per coin. Could this be what lies ahead for the first cryptocurrency?
In the Elliott Wave Principle, the 5s commodity wave is the longest and strongest.
with #Bitcoin labeled commodities by the SEC and CFTC, will show commodity-like market behavior? Here is a comparison with #Gold in the 1970s. $BTC vs $XAU pic.twitter.com/I6ifTOtz8V
– Tony “The Bull” (@tonythebullBTC) March 20, 2023