Can Bitcoin really surpass gold as a more valuable and reliable store of value in the long term?
- Bitcoin’s market cap has surged 350,000%, outperforming gold and signaling strong adoption. Analysts debated BTC’s future, with differing views on the reliability of technical patterns.
Bitcoin [BTC] has finally broken past the critical $60,000 threshold, now trading at $63,450, marking a significant milestone after weeks of resistance.
Despite a minor 0.02% dip in the last 24 hours, technical indicators like the RSI continue to reflect strong bullish momentum, currently positioned above the neutral level at 62.
Source: Trading View
Bitcoin gains momentum against gold
Beyond the short-term price action, Bitcoin’s market capitalization has surged by a staggering 350,000% since its inception, significantly outpacing its traditional safe-haven counterpart, gold.
Emerging signals suggest that Bitcoin may be on the cusp of another extended price rally, underscoring its growing momentum against the precious metal.
For those unaware, the BTC/GLD ratio tracks the performance of Bitcoin relative to gold.
This serves as a key metric to gauge Bitcoin’s adoption and market cap dominance, highlighting how the digital asset has increasingly outperformed gold over time.
Shedding light on the same, Veteran analyst Peter Brandt took to X noted,
Source: Peter Brandt/X
What is Brandt trying to explain?
Here, Brandt has predicted a potential surge in the Bitcoin-to-gold (BTC/GLD) ratio by over 400% in 2025, driven by a classic technical pattern known as the inverse head-and-shoulders (IH&S).
This formation occurs when a price chart shows three troughs, with the central trough (the head) being deeper than the two flanking ones, known as the left and right shoulders.
These troughs form below a common support line called the neckline, which serves as a pivotal breakout point.
According to technical analysis rules, an IH&S pattern is validated when the price breaks above the neckline, usually accompanied by increasing trading volumes.
This breakout often leads to a rally equal to the maximum distance between the neckline and the head’s lowest point.
Applying this analysis to the BTC/GLD ratio chart, Brandt projected an upside target of around 123, meaning that one Bitcoin could be valued at 123 ounces of gold by 2025—a remarkable increase from the current 24 ounces as of September 2024.
Critics dismiss Brandt analysis
While many concurred with Brandt’s analysis, long-time Bitcoin critic Peter Schiff offered a dissenting view.
Schiff argued that although technical patterns can be informative, they do not guarantee outcomes.
He warned that there is always a risk that the expected move—in this case, a significant increase in the BTC/GLD ratio—may fail to materialize, potentially leading to substantial losses instead.
Source: Peter Schiff/X
In fact, recently, Schiff also argued that Bitcoin does not qualify as money, and stated,
“Money must be the most marketable commodity and has value. Bitcoin has none. It is used for exchange and speculation. Apart from that, it’s not used the way money is supposed to be like gold.”
However, this remark faced sharp criticism from Strike’s Jack Mallers, who countered it best when he said,
“BTC is the best money in human history…It’s the scarcest with a fixed supply, most portable, and most divisible…Over the last decade, BTC has had an annual average return of 60%, while Gold had a 2% return over the same duration.”
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