Bitcoin has achieved a historic milestone by surpassing $106,000, setting a new record relative to gold. This increase has unprecedentedly boosted the BTC-to-gold ratio, reflecting Bitcoin’s rising role as a preferred reserve asset for corporations and institutions.
BTC-to-Gold ratio reaches a record high of 37.3
Just in: Bitcoin-Gold Ratio Hits New All-Time High! On Dec. 16, 1 $BTC equaled 40 ounces of gold as Bitcoin soared past $106K, with gold trading at ~$2,650. A milestone showcasing Bitcoin’s growing dominance as a store of value. #Bitcoin #Gold #Crypto pic.twitter.com/5kV2495JJh
— Andres Meneses (@andreswifitv) December 16, 2024
The BTC-to-gold ratio, which measures how many ounces of gold one Bitcoin can purchase, reached a historic high of 37.3. This figure reflects Bitcoin’s dominance compared to gold and marks a significant increase from the previous bull cycle peak of 36.7 in November 2021.
Sidney Powell, CEO of Maple Finance, highlighted Bitcoin’s growing adoption and maturity within the financial market. Powell attributed the rally to inflows into spot BTC ETFs, which have driven increased institutional interest. According to Powell, Bitcoin’s expanding role in balanced investment portfolios underpins its growing strength as an asset.
Singapore-based trading firm QCP Capital echoed these sentiments, describing Bitcoin as “digital gold” and emphasizing its preference as a store of value over traditional gold. The firm noted that Bitcoin’s recent performance amplifies its reputation as a modern reserve asset.
MicroStrategy’s continued support drives market sentiment
MicroStrategy, one of the largest corporate holders of Bitcoin, has played a significant role in influencing market sentiment. The company’s inclusion in the Nasdaq 100 has further reinforced confidence in Bitcoin as a strategic asset.
Michael Saylor, MicroStrategy’s chair, reaffirmed his commitment to Bitcoin despite its current price exceeding $100,000. Since adopting Bitcoin as its reserve asset in 2020, MicroStrategy has amassed approximately $46.87 billion worth of Bitcoin. This bold approach has inspired other corporations to follow suit.
Nasdaq-listed Solidion recently pledged to allocate 60% of its cash reserves to Bitcoin. Similarly, Japan-based Metaplanet mirrored MicroStrategy’s strategy, signaling a broader shift in corporate reserve preferences toward Bitcoin.
Governments show growing interest in Bitcoin as a reserve asset
The growing adoption of Bitcoin has extended beyond corporations, with some governments exploring its potential as a national reserve asset. President-elect Donald Trump’s proposal to establish a national Bitcoin reserve has sparked discussions in Russia, Brazil, Poland, and Japan.
Michael Saylor has been vocal about encouraging the U.S. government to prioritize Bitcoin over gold. In a recent interview, he suggested that the country could sell its gold reserves to acquire Bitcoin, further solidifying Bitcoin’s role as a modern financial reserve. As corporations and governments increasingly recognize Bitcoin’s value, its dominance relative to gold continues to grow. The latest surge highlights Bitcoin’s rising importance as both a store of value and a strategic reserve asset.
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