Bitcoin Poised for 400% Rise Against Gold? Veteran Analyst Says
Date: 2024-09-23 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
Bitcoin’s market cap has soared a staggering 350,000% since its inception compared to its traditional rival, gold. New signals point to the possibility of another extended Bitcoin rally, suggesting a resumption of growth against the precious metal.
Bitcoin Could Rise More Than 400% Against Gold in 2025
The BTC/GLD ratio chart compares the performance of these assets and can serve as a barometer for Bitcoin’s adoption relative to gold. For example, a rise in this ratio reflects Bitcoin’s higher returns relative to gold in terms of market cap, and vice versa.
According to Peter Brandt, the Bitcoin to Gold ratio could rise by over 400% by 2025. Brandt bases his bullish forecast on a classic technical pattern, the Inverse Head and Shoulders (IH&S).
This pattern is formed when the price makes three consecutive troughs, with the middle trough, called the “head,” being deeper than the other two, the “left” and “right shoulder.” The pattern is formed below a support line, called the “neckline.”
According to technical analysis, the IH&S pattern is realized when the price breaks the neckline amid increasing trading volumes. In this case, the price rises to the maximum distance between the neckline and the deepest point of the “head.”
Applying this technical principle to the BTC/GLD ratio chart, the target price comes out to around 123. In other words, 1 BTC could be worth 123 ounces of gold as early as 2025, up over 400% from 24 ounces on September 22, 2024.
Bitcoin ETF Market Could Grow to $220 Billion
The idea that Bitcoin could overtake gold is supported by its rapid adoption, especially among institutional investors, as well as the launch of Bitcoin exchange-traded funds (ETFs), which have increased Bitcoin’s presence in investment portfolios.
The approval of a Bitcoin ETF has led to inflows of over $17.69 billion since January 2024, with the Bitcoin ETF market projected to grow to $220 billion by 2027, using gold ETFs as a benchmark.
Additionally, experts like Anthony Scaramucci claim that Bitcoin will eventually surpass gold's market cap within the next decade, citing its advantages such as limited supply and portability.
