As a seasoned investor with decades of experience in various markets, I’ve seen my fair share of market fluctuations and trends. The recent surge in the Bitcoin to gold ratio has caught my attention, particularly because it’s reminiscent of the dot-com bubble days when traditional values were being redefined by new technologies.
As an analyst, I’m observing that the Bitcoin-to-gold ratio, a crucial benchmark reflecting Bitcoin’s buying power compared to gold, has reached a record peak. This upward trend coincides with Bitcoin’s continuous setting of new price records.
Experienced forex trader, Peter Brandt, recently shared on platform X on December 16th, that the value of one Bitcoin (BTC) compared to an ounce of gold reached a new all-time high.
The Bitcoin to gold ratio is a metric that divides the price of Bitcoin by the cost of spot gold and represents the number of ounces of gold it takes to buy 1 BTC.
On December 16th, the value of one Bitcoin in terms of gold ounces reached an all-time high of 40 ounces, as Bitcoin surpassed $106,000 for the first time. At approximately the same time, spot gold was being traded around $2,650.
“Next stop will be 89 to 1”
Emphasizing the fresh milestone reached in Bitcoin (BTC) to gold ratio, Brandt voiced optimism that this trend is likely to persist.
“Next stop will be 89 to 1 — it will require 89 ounces of gold [to buy 1 BTC],” Brandt predicted.
According to Brandt, his prediction aligns with a widely-held view among the crypto community that Bitcoin could tap into gold’s massive $15 trillion market share.
Currently valued at approximately $104,690 per unit, Bitcoin boasts a total market value of around $2.1 trillion. This substantial disparity in market capitalization between Bitcoin and other assets suggests that Bitcoin has a large room for expansion, according to Cathie Wood, founder of ARK Invest and a strong supporter of Bitcoin, who made this prediction in early December.
wood’s comments were made not long after the U.S. Federal Reserve Chair, Jerome Powell, likened Bitcoin to a digital form of gold. This comparison was made as Bitcoin surpassed the $100,000 price point on December 5th.
Bitcoin passes the last difficulty adjustment in 2024
The new record in the Bitcoin to gold ratio comes at a time when mining new Bitcoin is becoming increasingly difficult.
On December 15th, the Bitcoin mining difficulty (a measure indicating the complexity level of discovering the correct hash for each block within the Bitcoin blockchain) reached an all-time peak surpassing 105 trillion, as per data from CoinWarz.
Every approximately two weeks, or specifically after 2,016 blocks have been mined, the next adjustment in Bitcoin mining difficulty is planned for January 1, 2025.
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2024-12-16 12:35