The Bitcoin-gold ratio has hit historic highs as the year-end rally soars.

Bitcoin hit new peaks this week, pushing its ratio to gold to record levels as investors continue to pile up on the digital asset through the end of the year.

The ratio, which measures how many ounces of gold one bitcoin can buy, reached an unprecedented level on Monday, rising to 37.3. This means that one Bitcoin can now purchase approximately 37 ounces of gold. This is a new historic high.

Currently, this figure is roughly half a point higher compared to the figure witnessed during the cryptocurrency’s previous bull run in November 2021, at 36.7.

“Reaching new highs signals the continued adoption and maturity of Bitcoin as an asset class,” said Sidney Powell, CEO and co-founder of institutional capital markets Maple Finance. decryption. “Based on the tailwind of ETF inflows that have historically increased over time, we expect rates to catch up, with Bitcoin increasingly being viewed as a key part of balanced portfolios.”

Calculated by dividing the Bitcoin price by the spot price of gold per ounce,t is commonly used as an indicator to compare the relative strength and investor preference between two assets.

QCP Capital, a Singapore-based digital asset trading firm, said on Monday that the ratio strengthens Bitcoin’s position as digital gold and positions it as “an increasingly preferred store of value compared to traditional gold.” He said there was.

Nonetheless, traders continue to choose gold at a time of uncertainty about Bitcoin, which has become more relevant to traditional markets thanks in part to the approval of a U.S. Bitcoin exchange-traded fund (ETF) in January.

Global Bitcoin ​​ETF assets under management reached $119 billion. Data from Coinglass show. This is said to be less than half of the $290 billion in gold-based ETFs as of November 2024. data From the World Gold Council.

Bitcoin’s code limits the maximum supply to 21 million tokens and includes periodic halving events that reduce new supply by 50%, ensuring that the final Bitcoin will not be issued until approximately 2140.

Programmed scarcity contrasts with the continuous mining production of gold, but the two assets are often compared as a store of value due to their limited supply nature.

In any case, while gold maintains low volatility (about 20% per year) and enjoys the benefits of being a traded asset for 3,500 years, Bitcoin offers higher return potential despite larger price fluctuations and has a volatility of nearly 50%. It’s close.

Edited by Sebastian Sinclair