Since its launch, Bitcoin (BTC)’s market cap has skyrocketed by a whopping 350,000% compared to gold, the traditional safe-haven asset.
There are new signals that Bitcoin is headed for another long-term price rally, heralding renewed momentum for precious metals.
Bitcoin Could Grow More Than 400% Compared to Gold by 2025
The BTC/GLD ratio chart compares the performance of assets and can serve as a measure of BTC adoption relative to gold. For example, a rise in the ratio reflects Bitcoin outpacing gold in terms of market cap 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 cites classic technical patterns for his extremely bullish outlook.
This pattern, called the inverse head and shoulders (IH&S), develops when the price makes three consecutive lows, with the middle low (called the head) being deeper than the other two lows (called the left and right shoulders). The pattern forms below a common support line called the neckline.
According to the rules of technical analysis, the IH&S pattern is resolved when the price breaks through the neckline and the volume increases, thereby increasing the maximum distance between the neckline and the deepest point of the head.
BTC/GLD weekly rate chart. Source: Peter Brandt
Applying the same technical principles to the BTC/GLD ratio chart, the bullish target would be around 123. In other words, the price of 1 BTC could be equal to 123 ounces of gold by early 2025, which would represent a 400% increase compared to 24 ounces as of September 22, 2024.
Bitcoin ETF Market Expected to Grow to $220 Billion
The idea that Bitcoin will overtake gold has gained traction as Bitcoin has rapidly become more widely adopted, especially by institutional investors and the launch of Bitcoin exchange-traded funds (ETFs) has strengthened Bitcoin’s position in investment portfolios.
Bitcoin ETF approvals have brought in $17.69 billion since January 2024, and the Bitcoin ETF market could grow to as much as $220 billion by 2027 if gold ETFs are used as a benchmark, according to projections.
relevant: While it took two years for the first gold ETF to reach $10 billion, this Bitcoin ETF did it in two months.
Moreover, experts like Anthony Scaramucci claim that Bitcoin will eventually surpass gold in market capitalization within the next 10 years, citing Bitcoin’s advantages such as scarcity and portability.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.