In a historic price trend, Bitcoin (BTC) has quietly set a new all-time high (ATH) against gold. Veteran trader Peter Brandt highlighted this insight in an X post.
Bitcoin to gold price hits new high: Is there further growth potential?
Brandt's analysis shows that the BTC to gold ratio has reached a new high of 32.19 ounces of gold per BTC. In his post, the seasoned trader also cleverly mocked long-time gold advocate and outspoken Bitcoin critic Peter Schiff.
For those unfamiliar, the BTC to gold ratio measures Bitcoin's performance relative to gold, indicating how many ounces of gold are needed to purchase a whole BTC. This metric highlights Bitcoin's growing dominance as a store of value.
Brandt further noted that Bitcoin's next target is 89 ounces of gold per BTC, suggesting there is significant upside potential for Bitcoin against the precious metal. This aligns with the broader narrative within the cryptocurrency industry that Bitcoin is poised to challenge gold's $15 trillion market capitalization.
It's worth noting that Brandt had previously predicted that by 2025, the price of Bitcoin relative to gold would rise by 400%. As early as October, he projected based on historical market patterns that BTC's price could reach the equivalent of 123 ounces of gold.
A recent report from trading firm Bernstein further corroborates this claim, predicting that Bitcoin will replace gold as the preferred safe-haven asset within the next decade. As of now, BTC's market capitalization stands at $2.11 trillion, steadily approaching gold's dominance.
One of Bitcoin's earliest supporters, Eric Voorhees, has made similar predictions. The CEO of ShapeShift cryptocurrency exchange boldly stated that unlike gold or oil, the digital scarcity of BTC's programmed supply will drive its price upward.
Additionally, ETF Store President Nate Geraci predicts that Bitcoin-based exchange-traded funds (ETFs) could surpass gold ETFs in total assets under management within the next two years. Supporting this view, data from SoSoValue indicates that the cumulative net inflow for all spot BTC ETFs currently stands at $35.6 billion, while gold ETFs have seen a net inflow of $55 billion.
Potential impact of BTC strategic reserves
As Bitcoin breaks through the critical price level of $100,000, speculation grows about the incoming president Donald Trump's attitude towards digital assets. Industry experts believe Trump may prioritize the adoption of Bitcoin early in his second term, further driving up Bitcoin's price.
Data supports this optimistic view. According to cryptocurrency analyst Ali Martinez, the number of Bitcoin whales (wallet addresses holding over 1,000 Bitcoins) has surged since Trump won the election.
Speculation around the U.S. potentially establishing a strategic Bitcoin reserve has further fueled this optimism. Notable financiers believe that if the U.S. were to create such a reserve, China and other countries might follow suit to remain competitive. As of publication, BTC is trading at $106,909, up 3.7% in the past 24 hours.
