- Bitcoin’s market cap has risen 350,000%, outperforming gold and indicating strong adoption.
- Analysts debated the future of BTC, with differing views on the reliability of technical patterns.
Bitcoin [BTC] has now finally crossed the critical threshold of $60,000 trading at $63,450which marks an important milestone after weeks of resistance.
Despite a small decline of 0.02% in the last 24 hours, technical indicators such as the RSI continue to reflect strong bullish momentum, which is currently above the neutral level at 62.
Source: trading view
Bitcoin is gaining momentum against gold
Short-term price action aside, Bitcoin’s market cap has increased by a whopping 350,000% since its inception, significantly surpassing the traditional safe haven, gold.
Emerging signals suggest that Bitcoin may be on the cusp of another long-term price surge, underscoring the growing momentum against the precious metal.
For those who don’t know, the BTC/GLD ratio tracks Bitcoin’s performance against gold.
This serves as a key metric to measure Bitcoin’s adoption and market capitalization dominance, highlighting how the digital asset has consistently outperformed gold over time.
To shed the same light, veteran analyst Peter Brandt told X:
Source: Peter Brandt/X
What is Brandt trying to explain?
Here, Brandt has predicted a potential increase in the Bitcoin-gold (BTC/GLD) ratio of more than 400% by 2025, driven by a classic technical pattern known as the inverse heads-and-shoulders (IH&S).
This formation occurs when a price chart shows three troughs, with the central trough (the head) being deeper than the two flanking ones, also called the left and right shoulders.
These troughs form below a common support line called the neckline, which serves as a crucial breakout point.
According to the rules of technical analysis, an IH&S pattern is validated when the price breaks above the neckline, usually accompanied by increasing trading volumes.
This breakout often leads to a rally equal to the maximum distance between the neckline and the lowest point of the head.
Applying this analysis to the BTC/GLD ratio chart, Brandt projected an upside target of around 123, meaning one Bitcoin could be valued at 123 ounces of gold by 2025 – a notable increase from the current 24 ounces in September 2024.
Critics reject Brandt’s analysis
While many agreed with Brandt’s analysis, longtime Bitcoin critic Peter Schiff offered a dissenting opinion.
Schiff argued that while technical patterns can be informative, they do not guarantee results.
He warned that there is always a risk that the expected move – in this case a significant increase in the BTC/GLD ratio – does not materialize, potentially leading to significant losses.
Source: Peter Schiff/X
In fact, recently Schiff also argued that Bitcoin does not qualify as money, stating:
“Money should be the most tradable commodity and have value. Bitcoin has none. It is used for exchange and speculation. Apart from that, it is not used as money should be like gold.”
However, this comment was sharply criticized by Strike’s Jack Mallers, who responded best when he said:
“BTC is the best money in the history of humanity…It is the scarcest money with a fixed supply, the most portable and the most divisible…Over the past ten years, BTC has achieved an average annual return of 60%, while gold has had a return of 2% over the past ten years. same duration.”