Bitcoin continues its latest meteoric rise, taking on the strength of gold
The Bitcoin-to-gold ratio has reached a new all-time high, reflecting Bitcoin’s increasing purchasing power compared to gold. On December 16, the ratio climbed to 40 ounces of gold per Bitcoin as Bitcoin’s price surged above $106,000 for the first time. Meanwhile, gold was trading at approximately $2,650 per ounce. This milestone highlights Bitcoin’s growing dominance in the financial landscape.
It is now official. The Bitcoin/Gold ratio has now posted a new ATH. Next stop will be 89 to 1 — it will require 89 ounces of Gold (purchased at a rip-off premium from Shifty-Schiff SchiffGold @PeterSchiff) to buy a single Bitcoin. pic.twitter.com/PZnIQ81zwW
— Peter Brandt (@PeterLBrandt) December 16, 2024
The Bitcoin-to-gold ratio is a key metric that divides Bitcoin’s price by the spot price of gold, showing how many ounces of gold are needed to purchase one Bitcoin. Veteran trader Peter Brandt shared the news on social media, expressing confidence in the continued growth of this metric. He even suggested the ratio could rise to 89 ounces per Bitcoin in the future, underscoring the asset’s potential to rival gold’s market presence.
Bitcoin’s rising valuation has drawn comparisons to gold as a store of value. With Bitcoin’s market cap sitting at around $2.1 trillion, it still trails gold’s estimated $15 trillion market, leaving room for significant growth.
Prominent cryptocurrency advocates, including ARK Invest’s Cathie Wood, have echoed this sentiment, emphasizing Bitcoin’s potential to disrupt traditional markets. Wood’s optimism aligns with comments from Federal Reserve Chair Jerome Powell, who recently referred to Bitcoin as a digital version of gold.
The record ratio comes amid increased mining difficulty for Bitcoin, a measure of how challenging it is to validate transactions on the blockchain. As of December 15, Bitcoin’s mining difficulty reached a historic high of over 105 trillion, reflecting the network’s expanding computational demands.
Editor at the Big Blind, is a rising star in gambling journalism with a decade of experience, focusing on clear and accessible communication for a diverse audience.
