Bitcoin's market capitalisation has grown 350,000% compared to gold since its inception. New signals suggest another rally may be imminent. Peter Brandt, a seasoned market analyst, predicts Bitcoin could grow over 400% against gold by 2025.
He bases this on a technical pattern in the BTC/GLD ratio chart.
The chart compares the assets' performance, it serves as a barometer for Bitcoin's adoption rate versus gold.
Brandt cites an inverse head-and-shoulders pattern for his bullish outlook. This pattern forms when price creates three troughs, with the middle one deepest.
The pattern resolves when price breaks above the neckline with increased trading volumes. It typically rises by the distance between the neckline and the head's deepest point.
Applying this principle to the BTC/GLD ratio chart suggests a target of 123. This means 1 BTC could equal 123 ounces of gold by 2025.
Currently, 1 BTC equals 24 ounces of gold as of September 22, 2024, so the projected increase represents a more than 400% growth. Which is 'a lot', to say the least.
Bitcoin's rapid adoption fuels the idea of it overtaking gold. Institutional investors and Bitcoin ETFs have boosted its presence in portfolios. Bitcoin ETFs have seen inflows of over $17.69 billion since January 2024. Projections suggest the Bitcoin ETF market could reach $220 billion by 2027.
Brandt is not the only one who believes in Bitcoin's imminent victory over gold, which has been world's best asset to store wealth for centuries. Many analysts actually call Bitcoin 'digital gold', and that's for a reason.
Experts like Anthony Scaramucci argue Bitcoin will surpass gold's market capitalisation within a decade. They cite Bitcoin's scarcity and portability as advantages.