Is Bitcoin Heading for a ‘Parabolic Blowoff’ Mirroring Gold? Analysts Weigh In
Bitcoin exchange-traded funds (ETFs) may be tracking a similar pattern to gold before its dramatic 2025 surge, suggesting Bitcoin could soon experience a parabolic price move if sustained ETF demand continues. After 2022, gold’s price soared as central banks dramatically increased their purchases, ultimately absorbing available supply and triggering a major rally. Matthew Hougan of Bitwise sees Bitcoin ETFs absorbing more than 100% of new Bitcoin supply—a dynamic that could lead to a similar supply squeeze and explosive price appreciation, provided buy-side demand persists. However, analysts caution there are key differences: gold's buyers are largely central banks seeking stability, creating low volatility, while Bitcoin's institutional buyers tend to use more leverage and treat it as a risk asset, resulting in higher volatility. Moreover, Bitcoin remains highly sensitive to macroeconomic and Federal Reserve liquidity conditions, which could disrupt a smooth price run-up. While both assets are supply-constrained, Bitcoin’s price path may be more volatile and less predictable, with external macro factors playing a greater role. Currently, Bitcoin is up 1.8% over 24 hours, while gold is down 0.32%.
