Bitcoin Hits Record High Against Gold: What It Means For BTC Price?
16 Diciembre 2024 - 11:30PM
NEWSBTC
Amid its historic price action, Bitcoin (BTC) has quietly hit a new
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’s analysis revealed
that the BTC-to-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 long-time gold advocate Peter Schiff, a vocal Bitcoin
critic. Related Reading: Bitcoin Price Surge In 2024 Not Enough To
Beat Gold’s Risk-Adjusted Returns – Details Here For those
unfamiliar, the BTC-to-gold ratio measures Bitcoin’s performance
relative to gold, showing how many ounces of gold are needed to
purchase one whole BTC. This metric underscores Bitcoin’s growing
dominance as a store of value. Brandt further noted that the next
target for Bitcoin 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’s worth recalling that Brandt previously predicted Bitcoin would
rise 400% relative to gold by 2025. Back in October, he projected
that BTC could reach the equivalent of 123 ounces of gold based on
historical market patterns. A recent report by trading firm
Bernstein added weight to this narrative, forecasting that Bitcoin
is on track to replace gold as the preferred safe-haven asset
within the next 10 years. As of now, BTC boasts a market cap of
$2.11 trillion, steadily closing in on gold’s dominance. Similar
forecast was made by one of the earliest Bitcoin advocates, Eric
Voorhees. The CEO of ShapeShift crypto exchange made a bold
prediction, saying that unlike gold or oil, BTC’s
digitally-programmed supply scarcity will drive its price upwards.
Additionally, Nate Geraci, President of the ETF Store, predicts
that Bitcoin-based exchange-traded funds (ETFs) could surpass gold
ETFs in total assets under management within the next two years.
Supporting this outlook, data from SoSoValue indicates that
cumulative net inflows into all spot BTC ETFs currently stand at
$35.6 billion, compared to gold ETFs, which sit at $55 billion.
Implications Of A Potential BTC Strategic Reserve With BTC
surpassing the pivotal $100,000 price level, speculation has grown
regarding 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 BTC’s price.
Related Reading: BlackRock Declares Bitcoin The New ‘Gold
Alternative’ – Here’s Why 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 skyrocketed
since Trump’s election victory. This optimism is further fuelled by
speculation surrounding a potential US strategic Bitcoin reserve.
Prominent financiers argue that if the US were to create such a
reserve, China and other nations would likely follow suit to remain
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
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