The BTC/GLD ratio chart compares the performance of assets and serves as a barometer to measure the dominance of BTC over gold. For example, an increase in the ratio reflects that bitcoin is outperforming gold in market value, and vice versa.
According to experienced market analyst Peter Brandt, the bitcoin-to-gold ratio could increase by more than 400% by 2025. Brandt mentions a classic technical pattern that justifies his optimistic forecast.
This pattern is called an Inverse Head and Shoulders (IHandS), and it occurs when prices form three consecutive troughs, with the middle trough, called the head, deeper than the other two troughs, called the shoulders, on each side. This pattern forms below a common support line called the neckline.
As a rule of thumb in technical analysis, the IHandS pattern is resolved when price breaks above the neckline and is accompanied by an increase in trading volume. In this case, the price rises by an amount equal to the maximum distance between the neckline and the deepest part of the head.
If we apply the same technical principle to the BTC/GLD ratio chart, the growth target will be approximately 123. In other words, the price of 1 #BTC could equal 123 ounces of gold as early as 2025, which is more than 400% of the 24 ounces as of September 22, 2024.
the idea that #bitcoin could overtake gold has been fueled by the rapid spread of bitcoin, especially among institutional investors, and the launch of bitcoin exchange-traded funds (ETFs) that increase bitcoin's presence in investment portfolios.
the Bitcoin #ETF fund's approval has resulted in inflows of more than $17.69 billion since January 2024. Using gold ETFs as a benchmark, the bitcoin ETF fund market is projected to grow to $220 billion by 2027.
experts such as Anthony Scaramucci also argue that bitcoin's market capitalization will surpass that of gold in the next decade, citing BTC's advantages such as scarcity and portability.
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