Is Bitcoin Set For 400% Profit Against Gold? A veteran analyst weighs in.
Bitcoin's market capitalization has risen by a staggering 350,000% since its inception, compared to its traditional safe-haven rival, gold.
New signs suggest that Bitcoin (BTC) may be in for another extended price rally, signaling renewed momentum in the precious metal.
By 2025, Bitcoin could rise more than 400% against gold.
The BTC/GLD ratio chart compares the performance of the assets and can be used as a barometer to measure the adoption rate of BTC compared to gold. For example, an increase in the ratio indicates that Bitcoin is outperforming gold in terms of market cap and vice versa.
According to veteran market analyst Peter Brandt, the Bitcoin-gold ratio could increase by more than 400% by 2025.
Dubbed an inverse head and shoulders (IH&S), the price forms three consecutive troughs, with the middle trough – called the head – deeper than the other two, called the left and right shoulders. The pattern runs under a common support line called the neckline.
According to technical analysis, the IH&S pattern is resolved when the price breaks above the neckline with increasing trading volume. In doing so, it will rise as high as the distance between the neck line and the deepest point of the head.
BTC/GLD Weekly Ratio Chart. Source: Peter Brandt
Applying the same technical principle to the BTC/GLD ratio chart brings the target to around 123. From September 22, 2024
The Bitcoin ETF market is about to grow to $220B.
The idea of Bitcoin ahead of gold has seen rapid adoption, particularly by institutional investors, and the launch of Bitcoin Exchange Traded Funds (ETFs) has led to Bitcoin being included in investment portfolios.
As of January 2024, the approval of Bitcoin ETFs generated more than $17.69 billion in revenue, with estimates that the Bitcoin ETF market could grow to $220 billion by 2027, using gold ETFs as a benchmark.
RELATED: First Gold ETF Took 2 Years To Reach $10B, This Bitcoin ETF Did It In 2 Months
Additionally, experts such as Anthony Scaramucci argue that Bitcoin will eventually surpass gold's market capitalization in the next decade, citing BTC's advantages, such as scarcity and portability.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
