Bitcoin-Gold Ratio Hits All-Time High: Bitcoin has now reached an all-time high in value relative to gold, with 1 Bitcoin able to buy 37.3 ounces of gold—a new record. This surpasses the previous peak during the 2021 bull run, when the ratio reached 36.7.
Reasons for the sharp increase:
• ETF capital flows: Bitcoin is being strongly supported by investment capital flows through funds #ETF with total global assets under management reaching 119 billion USD, although still less than gold ETFs (290 billion USD).
• Store of value option: $BTC is increasingly seen as an alternative store of value to gold, thanks to its scarcity with a limited supply of 21 million tokens and a periodic supply reduction mechanism (halving).
Bitcoin vs. Gold:
• Bitcoin Advantages: Despite its high price volatility (nearly 50%/year), Bitcoin offers greater profit potential, especially as institutional adoption increases rapidly.
• Gold's advantage: Gold remains stable in times of uncertainty with lower volatility (20%/year) and a trading history of over 3,500 years.
Expert View: Sidney Powell, CEO of Maple Finance, believes that this record reflects Bitcoin's maturation as an asset class. He predicts that the Bitcoin-gold ratio will continue to rise due to ETF inflows and Bitcoin becoming an increasingly important part of a balanced portfolio.
Conclusion: Bitcoin’s superiority over gold is not only reflected in the record ratio, but also marks a shift in global investment attitudes. While gold still plays a traditional role, Bitcoin is asserting itself as a more modern and potential store of value.