Crypto Whale Bets Big on Gold as Deutsche Bank Sees Fair Value at $4,700
A major crypto investor, known as Loracle, has placed a bet of over $23 million that gold prices will rise. This move comes on the heels of Deutsche Bank analysts setting a fair value for gold at around $4,700 an ounce.
Loracle closed long positions worth $26.5 million in the HYPE token and sold another 800,000 units for $52.7 million. He also exited long bets on Ethereum, Zcash, and Solana, totaling about $95 million. The crypto investor then placed a gold long bet.
Deutsche Bank's analysts, Michael Hsueh and Bryant Xu, ran three tests to determine the fair value of gold. Their results suggested that gold has been in an explosive price phase since August 2024, with only five such phases appearing in data since 1975. The analysts' models point to a year-end fair value of around $4,700/oz, above their $4,600 Q4 forecast.
The World Gold Council's mid-year outlook is less bullish, expecting gold to trade within 5% of $4,100 for the rest of the year. The council also noted that small investors have been buying gold funds, while big institutions sold or sat still.