Amidst its historic price action, Bitcoin (BTC) has quietly hit a new all-time high (ATH) against gold. The view was clarified by veteran trader Peter Brandt in an X post.
Bitcoin hits new high against gold: room for further growth?
Brandt is analysis revealed that the BTC-to-gold ratio has reached a new HIGH of 32.19 ounces of gold per BTC. In his post, the seasoned trader also took a subtle dig at longtime gold advocate Peter Schiff, a vocal critic of Bitcoin.
Related Reading
For those unfamiliar, the BTC-to-gold ratio measures Bitcoin's performance relative to gold, showing how many ounces of gold are required to buy one whole BTC. This metric reinforces Bitcoin's growing dominance as a store of value.
Brandt also noted that the next target for Bitcoin is 89 ounces of gold per BTC, suggesting that there is significant room for Bitcoin to grow against the precious metal. This aligns with the broader narrative within the crypto industry that Bitcoin is poised to challenge gold's $15 trillion market cap.
It is worth remembering Brandt before predict Bitcoin rose 400% against gold by 2025. Back in October, he predicted 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 statement, a rehearsal that Bitcoin is on track to replace gold as the safe haven asset of choice within the next 10 years. To date, BTC has a market cap of $2.11 trillion, gradually closing in on gold's dominance.
The same prediction was made by one of the earliest Bitcoin proponents, Eric Voorhees. The CEO of crypto exchange ShapeShift made a bold prediction, saying Unlike gold or oil, a supply shortage of digitally programmed BTC will drive its price up.
Additionally, Nate Geraci, President of ETF Shop, predict that Bitcoin-based exchange-traded funds (ETFs) could surpass gold ETFs in total assets under management within the next two years. Supporting this view, data from SoSoValue indicates that cumulative net inflows into all spot BTC ETFs are currently at $35.6 billion, compared to gold ETFs, which are at $55 billion.
Impact on Potential BTC Strategic Reserve
With BTC surpassing the important price level of $100,000, speculation has grown regarding President-elect Donald Trump's approach to the digital asset. Industry experts believe that Trump could prioritize Bitcoin adoption early in his second term, further increasing the price of BTC.
Related Reading
Data supports this optimistic view. According to crypto analyst Ali Martinez, the number of BTC whales – wallet addresses with more than 1,000 BTC – has increased significantly since Trump won the election.
This hope is further fueled by speculation about a potential strategic Bitcoin reserve for the US. Famous financiers an argument if the US were to create such a reserve, China and other countries would likely follow suit in order to be competitive. At press time, BTC trades at $106,909, up 3.7% in the past 24 hours.
Featured image from Unsplash, Charts from X and TradingView.com
