Bitcoin has been underwhelming in recent months, trading within a narrow range while other assets, like gold and U.S. stock indexes, have surged to new highs. However, Charles Edwards, the founder of Capriole Investments, believes Bitcoin’s price action still holds promise. In a recent X post, Edwards highlighted a pattern where Bitcoin tends to follow gold’s price movements after a delay of around three months.

Gold’s Influence on Bitcoin

Using data since late 2019, Edwards demonstrated how Bitcoin’s price often mirrors gold’s trends, albeit with a latency period. As gold recently hit an all-time high in mid-July, Edwards suggests that Bitcoin could soon begin its own upward trajectory, potentially mirroring gold’s bullish run.

BTC/USD vs. XAU/USD chart. Source: Charles Edwards

Favorable Bitcoin Growth Forecast

Looking ahead, other analysts share a positive outlook for Bitcoin, especially as it relates to gold’s performance. William Clemente, co-founder of Reflexivity, noted that gold experienced a 10-12 month consolidation period following the launch of its exchange-traded funds (ETFs) in 2004, before marking a significant price increase. He suggests that Bitcoin might follow a similar pattern, with favorable growth expected into 2025.

BTC/USD vs. XAU/USD chart. Source: William Clemente

Despite its recent stagnation, Bitcoin remains the best-performing macro asset of 2024, with a year-to-date increase of 34%, closely followed by gold at 19%. The historical performance of these assets indicates that Bitcoin’s current phase might be a precursor to a significant bullish run, as seen in gold’s recent trends.

As the year progresses, investors are advised to keep an eye on Bitcoin’s price action, especially in relation to gold’s movements, as the cryptocurrency may soon embark on a new upward journey.