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Predicting the next bitcoin peak with Checkmate
The Bitcoin Frontier
Understanding Buy Pressure Multipliers: Bitcoin vs. Gold
The concept of buy pressure multipliers highlights the differing impacts of asset inflows on gold versus Bitcoin. For gold, the multiplier typically stands around one to one and a half, meaning its price increases correlate closely with actual purchases. In contrast, Bitcoin exhibits a significantly higher multiplier, estimated between 4.5 and 6 during favorable market conditions, indicating that it can amplify the effects of global liquidity changes. When evaluating inflation, gold is perceived as a reliable store of value, with an expected premium outcome, while Bitcoin, although volatile, can see much larger multipliers if demand surges, but historical analyses debunk inflated claims, such as the unrealistic 118x multiplier depicted by sources like Bank of America. Actual data suggests a maximal multiplier of 30x, with real-time estimates commonly settling around 2 to 3x, emphasizing the importance of accurate measures and skepticism towards exaggerated claims regarding Bitcoin's buying power relative to investment flows.
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