#The Ascent of Bitcoin Mirrors the Gold Markets of the 1970s

According to reports, Morgan Stanley analyst Sheena Shah stated in a report that Bitcoin’s current trend is following the gold market of the 1970s. She stated that the speculative driving similarity between the two is astonishing, and Bitcoin seems to have followed the history of gold prices rising in a four-year cycle. But she also emphasized that if Bitcoin continues to embark on the path of gold, it may experience a difficult period in the future.

Morgan Stanley: Bitcoin follows a four-year cycle of gold price inflation, with astonishing speculative similarity

In a report released by Morgan Stanley analyst Sheena Shah, it was revealed that Bitcoin appears to be following the same trend as the gold market did back in the 1970s. Shah highlights astonishing similarities in the speculative driving forces of the two markets, and observes that Bitcoin’s prices have continued to rise in four-year cycles, mimicking the behaviour of gold prices.
##Why Are Bitcoin and Gold Comparable?
Gold and Bitcoin have been used for very different purposes throughout history. While gold’s intrinsic value has made it popular as a medium of exchange and a store of wealth for thousands of years, Bitcoin is a much newer asset and is largely regarded as digital gold. Despite these disparities, both have certain common features that make them comparable from an investment perspective.
At a fundamental level, both gold and Bitcoin share limited supply and immunity from government control or manipulation. Investors often look towards alternative investments that diversify their portfolios against the volatility and uncertainties of traditional markets. Gold and Bitcoin are generally seen as safe-haven destinations during economic crises, and their prices tend to surge during times of economic uncertainty.
##The Four-Year Cycle
Shah’s report highlights a remarkable observation that Bitcoin has been following the same price cycle as gold. The gold market went through a four-year cycle in the 1970s; after each cycle, the price of gold soared several times higher than the previous high.
The cycle generally consisted of a bear market period of 12 to 18 months, followed by a gradual build-up of a bull market for the next 24 months. This would lead to an ascent in gold prices for the remaining 6 to 12 months of the cycle.
Furthermore, Shah suggests that the same pattern can be found in Bitcoin’s price trajectory. The cryptocurrency endures periods of bear markets, followed by prolonged periods of a bull market. Shah’s research indicates that the current bull market cycle for Bitcoin started in 2019 and proceeds until 2022, much like the bull markets of gold in the 1970s.
##Challenges Alongside the Similarities
While it is exciting to see the similarities in the price trends between Bitcoin and gold in the 1970s, there are still challenges that could hinder Bitcoin’s future growth.
The first and most significant challenge is regulatory uncertainty. Governments and regulators have expressed concerns over the decentralised nature of Bitcoin and the potential risks this poses to the global financial system. The introduction of new regulations could have a significant impact on the future price of Bitcoin, particularly if institutional investors or corporate entities begin to move away from cryptocurrencies as a result of government-imposed restrictions.
Secondly, the market is still nascent, which means that external factors such as media hype, or a sudden shift in the broader economy, could significantly impact the price of Bitcoin. Investors must approach this market with caution, given the inherent volatility of cryptocurrencies.
##Conclusion
Overall, the similarities between the gold markets of the 1970s and Bitcoin’s current trend provide valid reasons to believe that Bitcoin could be following the four-year cycle. However, investors must be aware of the inherent volatility in the cryptocurrency market and consider the regulatory hurdles standing in its way. While the gold market has been around for thousands of years, the cryptocurrency market is still in its nascent stages; only time will show if Bitcoin’s trend will truly follow that of gold.
######FAQs
**Q1. How can I invest in Bitcoin?**
A1. You can invest in Bitcoin via a cryptocurrency exchange, where you can buy and sell Bitcoin using fiat currency(USD,EUR,etc).
**Q2. What is the cryptocurrency market cap?**
A2. The cryptocurrency market cap is the total price of all coins in circulation. This figure is used to measure the total value of the cryptocurrency market.
**Q3. Is Bitcoin legal?**
A3. The legality of Bitcoin varies from country to country. Some countries have banned its use, while others have welcomed it with open arms. Before investing in Bitcoin, it is essential to understand the regulatory framework within our region.
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