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Amid its historic price action, Bitcoin (BTC) has quietly reached a new all-time high (ATH) against gold. The insight was highlighted by veteran trader Peter Brandt in an X-post.
Bitcoin Reaches 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 veteran trader also made a subtle comment about longtime gold advocate Peter Schiff, an outspoken Bitcoin critic.
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For those unfamiliar, the BTC to gold ratio measures Bitcoin’s performance against gold, showing how many ounces of gold it takes to purchase one whole BTC. This metric underlines 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 there is significant room for Bitcoin to grow against the precious metal. This fits with the broader narrative within the crypto industry that Bitcoin is poised to challenge gold’s $15 trillion market cap.
It is worth recalling that Brandt earlier predicted Bitcoin is expected to rise 400% against gold by 2025. In October, he predicted 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 story: to predict that Bitcoin is on track to replace gold as a safe haven within the next decade. Currently, BTC has a market capitalization of $2.11 trillion, steadily closing in on gold’s dominance.
A similar prediction was made by one of Bitcoin’s earliest proponents, Eric Voorhees. The CEO of ShapeShift crypto exchange made a bold prediction: proverb that, unlike gold or oil, BTC’s digitally programmed supply shortage will drive its price higher.
Additionally, Nate Geraci, president of the ETF Store, says predicts that Bitcoin-based exchange-traded funds (ETFs) could surpass gold ETFs in total assets under management within the next two years. In support of this vision, facts from SoSoValue indicates that cumulative net inflows into all spot BTC ETFs are currently $35.6 billion, compared to gold ETFs, which are $55 billion.
Implications of a potential strategic reserve of BTC
Now that BTC has crossed the crucial $100,000 price level, speculation has increased about newly elected President Donald Trump’s approach to digital assets. Industry experts believe that Trump could prioritize Bitcoin adoption at the start of his second term, which would further increase the price of BTC.
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Data support 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 fueled by speculation around a potential US strategic Bitcoin reserve. Prominent financiers argue that if the US were to create such a reserve, China and other countries would likely follow suit to remain competitive. At the time of writing, BTC is trading at $106,909, up 3.7% in the last 24 hours.
Featured image from Unsplash, charts from X and TradingView.com