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The price of Bitcoin (BTC) fell by almost 12% today, triggering massive liquidations worth over $1 billion. Explanations range from jump trading selling to an impending recession in the U.S. economy. Whatever the real reasons for such a collapse, the market is clearly being driven by extreme fear, uncertainty and doubt at the moment.

What is certain, however, is the question of what's next. To answer that question, Peter Brandt, a legendary trader who has been in the market since the 1970s, has issued a new Bitcoin price update. However, the outlook is based on a comparison between BTC and gold.

As many may know, cryptocurrencies are now perceived by many as a store of value, even dubbed Gold 2.0. Thus, Brandt reports that at current levels, Bitcoin could fall significantly against gold, by 39%, without undermining its long-term bullish outlook against gold. 

Meanwhile, the long-term chart shows that the cryptocurrency could rise by more than 477%, highlighting its potential for significant upside. 

Bitcoin v. Gold

Many investors say you should hold both gold and Bitcoin as part of a diversified portfolio. Relying on just one asset is risky, like chasing fool's gold, according to the trader. This shows why it is important to have a balanced investment strategy, where both gold and Bitcoin can play complementary roles.

"I believe in owning both gold and Bitcoin," Brandt himself concludes.