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Amidst its historic price action, Bitcoin (BTC) has quietly hit an all-time high (ATH) against gold. The insight was highlighted by veteran trader Peter Brandt in an X post.
Bitcoin Hits New ATH Against Gold: Room for Further Growth?
Brandt analysis revealed that the BTC-to-gold ratio reached a new ATH of 32.19 ounces of gold per BTC. In his post, the veteran trader also took a dig at longtime gold advocate Peter Schiff, a critic of Bitcoin.
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For those unfamiliar, the BTC to gold ratio measures Bitcoin’s performance against gold, indicating how many ounces of gold are required to buy one BTC. This metric underscores Bitcoin’s growing dominance as a store of value.
Brandt also noted that Bitcoin’s next target is 89 ounces of gold per BTC, suggesting Bitcoin’s significant room for growth against the precious metal. This is in line with the broader story within the crypto industry that Bitcoin is poised to challenge gold’s $15 trillion market cap.
It’s good to remember what Brandt said before predicted Bitcoin will rise 400% against gold by 2025. Back in October, he stated that BTC could reach the equivalent of 123 ounces of gold based on historical market patterns.
A recent report by the trading firm Bernstein added weight to this story, prediction that Bitcoin is on track to replace gold as the preferred safe-haven asset within the next 10 years. As of now, BTC has a market cap of $2.11 trillion, narrowly closing in on gold’s dominance.
A similar prediction was made by one of Bitcoin’s early advocates, Eric Voorhees. The CEO of ShapeShift crypto exchange made a bold prediction, saying that unlike gold or oil, a lack of fixed supply of BTC will increase its price.
Additionally, Nate Geraci, President of ETF Store, he predicts that Bitcoin-based exchange-traded funds (ETFs) could surpass gold ETFs in total assets under management within the next two years. To support this idea, data from SoSoValue shows that combined net inflows across all BTC ETF positions currently stand at $35.6 billion, compared to gold ETFs, which sit at $55 billion.
Potential Local Implications of the BTC Strategic Reserve
As BTC surpasses the key $100,000 price level, speculation has grown about President-elect Donald Trump’s approach to the digital asset. Industry experts believe that Trump may prioritize the adoption of Bitcoin at the beginning of his second term, which further boosted the price of BTC.
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The data supports this optimistic view. According to crypto analyst Ali Martinez, the number of BTC whales – wallet addresses holding more than 1,000 BTC – has increased since Trump’s election victory.
This hope is fueled by this speculation around the potential location of US strategic Bitcoin. Major financiers argue that if the US were to build such a reserve, China and other nations would likely follow suit to stay competitive. At press time, BTC is trading at $106,909, up 3.7% in the last 24 hours.
Featured image from Unsplash, Charts from X and TradingView.com
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