On 30 May 2024, renowned trader Peter Brandt shared an analysis of Bitcoin’s performance against gold on the social media platform X.
Peter Brandt is a highly respected and veteran trader known for his expertise in classical charting principles. With over four decades of experience in trading commodity futures, forex, and cryptocurrencies, Brandt has established himself as a significant figure in the trading community.
Brandt is the founder and CEO of Factor LLC, a global trading firm he established in 1980. His approach to trading is heavily based on classical chart patterns and rigorous risk management, which has earned him a stellar reputation. He shares his insights and strategies through the Factor Report, a subscription service that provides educational content, real-time alerts, and webinars to its members.
Throughout his career, Brandt has been recognized for his straightforward and disciplined trading style. His analysis often focuses on technical patterns and market behaviors, and he is known for his clear and actionable trading advice. Notably, he has been a prominent voice in the cryptocurrency community, making headlines with his predictions and analyses of Bitcoin and other digital assets.
Brandt’s influence extends beyond his trading successes; he is also a celebrated author and educator. His book, “Diary of a Professional Commodity Trader,” offers a detailed look into his trading practices and has been praised for its practical insights and honest counsel. Brandt is also a regular contributor to financial media and often shares his expertise in interviews and public forums.
His work is highly regarded by other industry professionals, with notable figures such as Jack Schwager, Howard Lindzon, and Raoul Pal endorsing his methods and insights. Brandt’s commitment to educating others and his transparent sharing of knowledge make him a valuable mentor to many traders around the world.
On Thursday, Brandt, posted a chart illustrating the BTC/GLD ratio and commented on Bitcoin’s historical gains and future potential.
The chart tracks the number of ounces of gold (GC) required to purchase one Bitcoin (BTC) from 2012 to 2024. The visual representation shows Bitcoin’s significant appreciation against gold over the years. Initially, it took just a few ounces of gold to buy one Bitcoin. As Bitcoin’s value soared, the ratio increased substantially, reflecting Bitcoin’s rise as a prominent asset.
Brandt’s chart highlights several key patterns and periods of consolidation followed by significant gains. These patterns suggest that Bitcoin has experienced phases of stabilization before making substantial upward movements. The chart indicates:
Early Growth (2012-2014): The initial phase where Bitcoin started gaining against gold, breaking several resistance levels.
Consolidation Phases: Periods where the BTC/GLD ratio moved sideways, reflecting market stabilization before the next surge.
Major Breakouts: Points where Bitcoin significantly increased its value against gold, marked by sharp rises in the ratio.
In his post, Brandt mentioned that since Bitcoin’s inception, it has consistently gained value against gold. He emphasized that the BTC/GLD ratio has been on a steady upward trajectory. According to Brandt, the ratio is expected to “chop for another 12 to 18 months,” implying a period of sideways movement or consolidation. This phase, characterized by fluctuations within a range, is expected before the ratio advances to a level where 100 ounces of gold would be required to buy one Bitcoin.
Brandt’s projection of the BTC/GLD ratio reaching 100 ounces of gold per Bitcoin suggests a bullish long-term outlook for Bitcoin. This potential growth could be driven by factors such as increased institutional adoption and Bitcoin’s growing recognition as a store of value akin to digital gold.
Since its inception Bitcoin $BTC has gained against Gold. This chart shows the # oz. of $GC_F to buy one BTC. The ratio should chop for another 12 to 18 months — then advance to 100 oz of GC to buy a BTCWhat say you @PeterSchiff pic.twitter.com/3G2adZV0KM
— Peter Brandt (@PeterLBrandt) May 30, 2024
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