Bitcoin’s ascent to new heights this week has pushed its ratio against gold to unprecedented levels as institutions continue to invest in the digital asset as the year comes to an end. The ratio, which calculates how many ounces of gold one Bitcoin can buy, reached a record high of 37.3 on Monday, meaning one Bitcoin can now purchase around 37 ounces of gold.
This marks a new historic high. Sidney Powell, CEO and co-founder of institutional capital marketplace Maple Finance, said, “Hitting a new high signals the continued adoption and maturation of Bitcoin as an asset class. We expect to see the ratio catch up based on the tailwinds of ETF inflows, which history shows increase over time, and bitcoin increasingly being viewed as a staple part of balanced portfolios.”
Calculated by dividing Bitcoin’s price by the spot price of gold per ounce, the record print highlights Bitcoin’s growing dominance as “digital gold,” fueled by institutional adoption this year and the broader appeal of its scarcity model.
The reading typically serves as an indicator for comparing the relative strength and investor preference between the two assets. Currently, the ratio is around half a point higher than the peak witnessed during crypto’s previous bull run in November 2021 at 36.7. The ratio reinforces Bitcoin’s status as digital gold, positioning it as an “increasingly favored store of value over traditional gold,” according to Singapore-based digital asset trading firm QCP Capital.
However, traders often opt for gold during times of uncertainty over Bitcoin, which has become more correlated to traditional markets. Global Bitcoin ETF assets under management have reached $119 billion, while gold-backed ETFs’ assets under management are at $290 billion. Bitcoin’s code limits its maximum supply to 21 million tokens and includes halving events that periodically reduce new supply by 50%, ensuring the final Bitcoin won’t be minted until approximately 2140.
This programmed scarcity contrasts with gold’s continuous mining production. While gold maintains lower volatility—around 20% annually—and benefits from its 3,500-year history as a traded asset, Bitcoin offers higher return potential despite more significant price swings, with volatility near 50%.
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