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Amid its historic price action, bitcoin (btc) has quietly reached a new all-time high (ATH) against gold. The idea was highlighted by veteran trader Peter Brandt in an x post.
bitcoin Hits New ATH Against Gold: Room for Further Growth?
Brandt <a target="_blank" href="https://x.com/PeterLBrandt/status/1868488885015367720″ target=”_blank” rel=”nofollow”>analysis revealed that the btc-gold ratio has reached a new ATH 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 bitcoin critic.
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For those unfamiliar, the btc-gold ratio measures the performance of bitcoin relative to gold, showing how many ounces of gold it takes to purchase a full btc. This metric underscores bitcoin's growing dominance as a store of value.
Brandt further noted that bitcoin's next target is 89 ounces of gold per btc, suggesting 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 that Brandt previously provided bitcoin would rise 400% relative to gold by 2025. In October, he projected that btc could reach the equivalent of 123 ounces of gold based on historical market patterns.
A recent report from trading firm Bernstein added weight to this narrative, forecast 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 capitalization of $2.11 trillion, steadily approaching gold's dominance.
One of bitcoin's early proponents, Eric Voorhees, made a similar forecast. The CEO of crypto exchange ShapeShift made a bold prediction: saying that, unlike gold or oil, btc's digitally programmed supply shortages will drive its price up.
Additionally, Nate Geraci, president of ETF Store, predict that bitcoin-based exchange-traded funds (ETFs) could overtake gold ETFs in total assets under management within the next two years. Supporting this perspective, <a target="_blank" href="https://sosovalue.com/assets/etf/us-btc-spot” target=”_blank” rel=”nofollow”>data SoSoValue indicates that cumulative net inflows into all btc spot ETFs currently stand at $35.6 billion, compared to gold ETFs at $55 billion.
Implications of a possible strategic btc reserve
With btc surpassing the fundamental price level of $100,000, speculation has increased over President-elect Donald Trump's approach to digital assets. Industry experts believe that Trump may prioritize bitcoin adoption early in his second term, further boosting the price of btc.
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The data supports this optimistic view. According to crypto analyst Ali Martínez, the number of btc whales (wallet addresses containing more than 1,000 btc) has skyrocketed since Trump's election victory.
This optimism is further fueled by speculation around a possible strategic reserve of bitcoin in the US. Featured financiers argue that if the United States created such a reserve, China and other nations would likely do the same to remain competitive. At press time, btc is trading at $106,909, up 3.7% in the last 24 hours.
Featured image from Unsplash, x Charts and TradingView.com
