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Gold Prices Soared 300% After First ETF Approval, Will Bitcoin (BTC) Follow?

2 mins
Updated by Geraint Price
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In Brief

  • Bitcoin (BTC) prices are surging, reaching an 18-month high of $35,000 amid hype surrounding potential spot ETF approval.
  • Analysts are drawing parallels to gold's price surge post-ETF approval in 2004, suggesting Bitcoin could follow suit.
  • If Bitcoin mirrors gold's post-ETF trajectory, its value could potentially exceed $120,000 in the coming years.
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Bitcoin (BTC) prices are pumping as spot exchange-traded fund (ETF) hype ramps up sending the asset to an 18-month-high. Gold prices surged in the years following its first ETF approval, but will Bitcoin follow suit?

Bitcoin prices touched $35,000 during the Tuesday morning Asian trading session. Moreover, the massive move marks a 14% daily gain sending the asset to its highest price since May 2022.

Mirroring Gold Price Action?

The surge has been attributed to the hype and expectations surrounding a spot ETF approval. Unlike futures ETFs, a spot product would invest directly in the underlying asset adding to buying pressure. 

Analysts have been looking back to November 2004 when the first spot gold ETF (SPDR Gold Shares) was listed on the New York Stock Exchange. 

The fund allowed investors to gain exposure to the commodity without having to buy physical gold directly. The same applies to a spot BTC ETF. This will allow institutions to invest in the asset without having to set up a wallet or exchange account and buy it.  

Gold prices rampaged on an eight-year bull run following the ETF listing, analysts observed. 

Gold prices after ETF listing. Source: X/@MustacheTommy
Gold prices after ETF listing. Source: X/@MustacheTommy

Gold was trading at around $430/oz in November 2004, and it had doubled in price by the end of 2007. By the end of 2011, gold prices had surged more than 300% to reach $1,800/oz.

Read more: How To Buy Bitcoin (BTC) and Everything You Need To Know

Gold is far less volatile than Bitcoin and price movements are slow and steady. However, if BTC mirrors this movement and surges a similar amount over the next couple of years it could top $120,000.

Gold prices are currently close to their peak prices at $1,977/oz, buoyed by geopolitical tensions in the Middle East. Comparatively, Bitcoin is still 50% down from its peak price almost two years ago. 

Big Bitcoin Predictions

This week’s massive market move has spurred analysts into “price prediction mode.” Crypto analyst Mags predicted the breakout before the end of this year. Furthermore, a pullback below $30,000 has also been predicted in the next couple of months.

This will be a final accumulation zone before a major breakout sending the asset as high as $50,000 before the halving, according to the analyst. 

BTC price predictions. Source: X/@thescalpingpro
BTC price predictions. Source: X/@thescalpingpro

They predicted a new all-time high before the end of 2024 with more gains and new peaks being made in 2025. 

After what has seemed like an endless crypto winter, the Bitcoin bulls finally have something to celebrate this week.  

Top crypto platforms in the US | March 2024



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Martin Young
Martin Young is a seasoned cryptocurrency journalist and editor with over 7 years of experience covering the latest news and trends in the digital asset space. He is passionate about making complex blockchain, fintech, and macroeconomics concepts understandable for mainstream audiences.   Martin has been featured in top finance, technology, and crypto publications including BeInCrypto, CoinTelegraph, NewsBTC, FX Empire, and Asia Times. His articles provide an in-depth analysis of...