Bitcoin (BTC) made a major breakthrough today, surging above the $106,000 mark during early Asian trading hours. As the price of the currency broke new records, the BTC-to-gold ratio also reached a new peak.
While BTC has since retreated 2% from its new high, bullish pressure remains in the market.
Bitcoin outperforms gold
During the early Asian session on Monday, Bitcoin price surged to an all-time high of $106,533 amid increased trading activity. This price surge pushed the BTC-to-gold ratio to a peak of 40 ounces of gold per coin.
The BTC to gold ratio compares the price of one Bitcoin to the price of gold, expressed in ounces. It measures how valuable BTC is relative to a specific amount of gold, providing insight into the relative value of Bitcoin versus the traditional store of value, gold.
When the ratio rises, Bitcoin becomes more valuable compared to gold, indicating increased investor confidence in Bitcoin as an asset.
In a post on X on December 16, popular trader Peter Brandt expressed his opinion that the next target for this ratio is 89 to 1, meaning that he would need 89 ounces of gold to buy one bitcoin.
As for what is driving BTC’s rally, on-chain analytics platform Santiment highlighted in a post on X that the ongoing whale accumulation of the coin is primarily fueling the price growth.
“Bitcoin has surged to $106.5K for the first time in its 16+ year history. Since the bullish surge began on October 10, there has been a net increase of 1,582 additional wallets holding at least 100 BTC, an increase of +9.9% of wallets in a relatively short period of time!” the data provider said.
BTC Price Prediction: A New High Could Be On The Horizon
At press time, Bitcoin is trading at $104,567, just below its new resistance at its recent price peak of $106,533. If Bitcoin whales step up their accumulation efforts, the price of the coin will regain this high and head towards a new peak.
On the other hand, if profit-taking activity increases, Bitcoin price may lose its recent gains and drop to $94,344. If this support level weakens, the coin price may slide below $90,000 to trade at $84,776.