Author: Yashu Gola, CoinTelegraph; Translated by: Baishui, Golden Finance

Compared to its traditional safe-haven rival, gold, Bitcoin’s market capitalization has surged by a staggering 350,000% since its inception.

New signals suggest that Bitcoin may be on the verge of another long-term price rally, signaling renewed upward momentum against the precious metal.

Bitcoin's exchange rate against gold could grow by more than 400% by 2025

The BTC/GLD ratio chart compares the performance of assets and can serve as a barometer of BTC adoption relative to gold. For example, an increase in the ratio reflects Bitcoin outperforming gold in terms of market capitalization performance, and vice versa.

According to veteran market analyst Peter Brandt, the Bitcoin-to-gold ratio could rise by more than 400% by 2025. Brandt cited a classic technical pattern to express his extremely bullish outlook.

This pattern is called an inverted head and shoulders (IH&S) and forms when the price forms three consecutive troughs, with the middle trough – called the head – being deeper than the other two troughs (called the left and right shoulders). The pattern forms below a common support line called the neckline.

As a rule of technical analysis, the IH&S pattern resolves when the price breaks the neckline on rising volume. In the process, it rises to the maximum distance between the neckline and the deepest point of the head.

BTC/GLD weekly ratio chart. Source: Peter Brandt

Applying the same technical principles on the BTC/GLD ratio chart would yield an upside target of around 123. In other words, the price of 1 BTC could equal 123 ounces of gold as early as 2025, a gain of over 400% from 24 ounces on September 22, 2024.

Bitcoin ETF Market Size to Grow to $220 Billion

The idea of ​​Bitcoin surpassing gold stems from its rapid popularity, especially among institutional investors, and the launch of Bitcoin exchange-traded funds (ETFs), which have strengthened Bitcoin's position in investment portfolios.

Since January 2024, the approval of Bitcoin ETFs has brought in more than $17.69 billion in inflows, and it is estimated that by 2027, the Bitcoin ETF market size may grow to $220 billion based on the gold ETF benchmark.

Additionally, experts like Anthony Scaramucci believe that Bitcoin will eventually surpass gold’s market cap within the next decade, noting that BTC offers advantages like scarcity and portability.