- BTC could outperform gold by 122%.
- The market expectation of a US BTC reserve rose by 10 points.
Bitcoin [BTC] has outperformed gold since November as analysts expect an additional 122% rally against global reserves.
According to renowned technical chartist and trader, Peter Brandtyou could soon need 89 ounces of gold to buy 1 single BTC coin.
Brandt’s projection was based on the bullish cup and handle formation on the BTC/gold ratio chart.
Source:
For context, the BTC/gold ratio tracks the relative performance of BTC versus gold. It recently made a new high of 39 and broke above resistance, which could enable the bullish 89 target.
BTC: Next Global Reserve?
Since November, BTC has outperformed gold by 60%, with the BTC/GLD ratio increasing from 25 to 40. BTC’s remarkable performance was accelerated by pro-crypto Donald Trump’s victory in the US presidential election.
Source: BTC/Gold ratio, TradingView
One of the government’s upcoming commitments was to set up a national BTC reserve and most market insiders believe this could happen on Day 1.
According to Strike CEO Jack Mallers, the president-elect was explore a “Day 1 Executive Order for a BTC Reserve.”
This could accelerate Brandt’s 89 breakout projection for BTC/gold. This meant about 230,000 per BTC if hit.
At the time of writing, the prediction markets were priced at a 35% There is a good chance that Donald Trump will create a BTC reserve within the first 100 days of his administration.
Source: Polymarkt
This was a 10% increase over last week’s odds, indicating the market was becoming increasingly optimistic about such an outcome. If created, BTC could become aggressive compete with gold as a global reserve.
Whether Brandt’s target of $230,000 per BTC will be achieved this cycle remains to be seen. But most asset managers had a price target of $150,000 to $200,000 for this cycle.
Meanwhile, BTC hit a new all-time high of $106.6K and was valued at $105K ahead of the Fed rate decision on December 18.