Other factors contributing to Bitcoin’s long-term growth include the cryptocurrency’s rising value relative to gold, as well as the dollar’s weakness against other national currencies, according to RBC.
Metaplanet and Strive hold 43,000 and 20,200 bitcoins, respectively, for a total value of nearly $5 billion at an exchange rate of $77,500, as of August 24. It is noteworthy that artificial intelligence was previously viewed by the broader community as a threat to Bitcoin rather than a positive investment factor.
Gerovich’s optimistic view of Bitcoin stems from how AI is transforming the global economy as a whole: “AI significantly reduces the cost of producing and replicating software, content, analytics, and other products.”
The expert calls Bitcoin an asset that cannot be copied. In his view, the more AI reduces the cost of creating digital products, the more important the 21-million-BTC supply cap becomes. Furthermore, Gerovich believes that AI agents will prefer to hold capital in digital assets rather than traditional money in the future.
Meanwhile, Cole cited the development of AI as a structural factor driving Bitcoin’s most powerful bull cycle. He believes that in a world where AI is becoming inexpensive and widely accessible, capital increasingly values assets that cannot be artificially replicated.
“Scarce assets such as Bitcoin, gold, and silver will benefit significantly from this trend. This is a structural macroeconomic force that Bitcoin did not have before,” Cole wrote, noting that “Bitcoin’s next cycle will be the most powerful in history.”
Both statements were made against the backdrop of Bitcoin’s 23% rise over the past week, which marked its largest percentage gain in recent years. This followed measures taken by the U.S. government to double its bond purchases in order to ease market stress. At one point, the price of Bitcoin (BTC) rose from $63,000 to nearly $80,000 during the week ending August 23.
Factors Driving Bitcoin’s Growth
In his analysis, Cole highlighted two additional key factors that could positively impact Bitcoin. The first is the weakening of the dollar relative to other national currencies, a trend the expert sees continuing in the long term.
“Bitcoin has never faced such a macroeconomic environment before, and this will create a tailwind unlike anything seen in its history,” he notes.
The second factor is the rise in Bitcoin’s price relative to gold. Cole believes this positive trend confirms that Bitcoin could outpace gold in the race to become the most sought-after scarce asset.
Over the past week, Bitcoin’s price relative to gold has risen by about 20%; in past cycles, such a trend signaled a reversal in Bitcoin’s trend against the dollar: “I am convinced that Bitcoin’s bear market is over.”
