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Bitcoin Faces Another 50% Reckoning As Gold Shines, Analyst Says
Yahoo Financeยท 2025-12-27 15:21
Core Insights - The value of Bitcoin against gold is predicted to potentially decrease by 50%, with Bitcoin's value expected to drop from approximately 20 times that of gold to 10 times by 2026 [1][2] - The Bitcoin-to-gold ratio serves as an early warning indicator for recession risks, with a high correlation of 0.5376 between Bitcoin, stocks, and market volatility [2][4] - A decrease in Bitcoin's value relative to gold could lead to significant shifts in investment strategies, as both assets are viewed as alternative investments [3] Market Predictions - By 2026, Bitcoin is forecasted to be around $50,000, with core CPI easing toward 1%, oil prices near $40, and gasoline around $2 [3] - The current Bitcoin-to-gold ratio of 20x is at greater risk of declining toward 10x than increasing to 30x, indicating potential recessionary implications [2][3] Investment Implications - Investors should monitor the high correlation between Bitcoin, stocks, and market volatility, as changes in one could impact the others [4] - The anticipated decrease in Bitcoin's purchasing power compared to gold may prompt a reevaluation of investment strategies among investors [2][3]