BTC
Bitcoin is increasingly outperforming gold and becoming the preferred strategic reserve. The value of the digital asset compared to gold has grown significantly, breaking through an all-time high as institutions show increasing interest in Bitcoin ETFs.
Although gold is widely considered a strategic reserve asset, Bitcoin is rapidly gaining momentum. Bitcoin’s value relative to gold has surged to an all-time high, indicating a possible shift in strategic reserve preference.
Bitcoin to gold ratio hits all-time high of 37.3
Just in: Bitcoin and gold hit all-time highs! On December 16, $1 Bitcoin was worth 40 ounces of gold, sending Bitcoin to over $106K, with gold trading at around $2,650. A milestone that shows Bitcoin’s growing status as a store of value. 🚀#Bitcoin#gold #cryptopic.twitter.com/5kV2495JJh
— Andres Meneses (@andreswifitv) December 16, 2024
The Bitcoin-to-gold ratio, which measures how many ounces of gold one Bitcoin can buy, has broken through all-time highs. The ratio is calculated by dividing the price of Bitcoin by the spot price of gold per ounce. The value is then used to compare the relative strength of Bitcoin to gold. On Monday, the ratio hit a record high of 37.3 as Bitcoin broke through the $106,000 barrier.
This ratio indicates that Bitcoin buys about 37 ounces of gold. Current Bitcoin to Gold
Sidney Powell, CEO and co-founder of institutional capital markets firm Maple Finance, said Bitcoin’s rise shows the cryptocurrency’s adoption and maturity as an asset class. The executive told Decrypt that he expects the ratio to “catch up” as spot BTC ETF inflows continue to drive Bitcoin’s price. Powell also noted that Bitcoin is increasingly seen as a core part of balanced portfolios.
Singapore-based digital asset trading firm QCP Capital wrote on Monday that the Bitcoin-to-gold ratio is consistent with Bitcoin being considered digital gold. The asset trading firm also noted that Bitcoin has retained its status as a preferred store of value over traditional gold.
“The Bitcoin-to-gold ratio reached an all-time high during this move, amplifying Bitcoin’s status as “digital gold” and cementing its position as an increasingly preferred store of value over traditional gold.”
~ QCP Capital
The note also highlighted that MicroStrategy’s inclusion in the Nasdaq 100 index has boosted the prevailing market sentiment. Michael Saylor, MicroStrategy’s president, hinted that the company will buy more Bitcoin despite the asset being priced above $100,000.
MicroStrategy adopted Bitcoin as a strategic reserve in 2020 and became the largest Bitcoin company. According to data from BitcoinTreasuries, MicroStrategy has since doubled its assets and now holds $46.87 billion in Bitcoin.
Michael Saylor’s company has inspired other companies to adopt BTC as a strategic reserve. NASDAQ-listed Solidion recently pledged to allocate 60% of its cash reserves to buy Bitcoin. Metaplanet has also mirrored Michael Saylor’s approach and adopted the asset as a strategic reserve.
As more companies join the bandwagon, governments around the world are considering Bitcoin as a strategic national reserve asset. President Donald Trump has called for the creation of a Bitcoin national reserve asset, which has sparked discussions in other countries such as Russia, Brazil, Poland, and Japan.
In an interview with Yahoo Finance, Michael Saylor urged the incoming administration to sell the country’s gold reserves and adopt Bitcoin instead. Saylor also discouraged the US government from buying more gold for its national reserve.
