Bitcoin [BTC] has successfully crossed the crucial $60,000 milestone, now sitting at $63,450, achieving a significant breakthrough following weeks of stubborn resistance.
Despite experiencing a marginal 0.02% decline over the past 24 hours, key technical indicators like the RSI continue to signal robust bullish momentum, currently stationed above the equilibrium point at 62.
Bitcoin Surges Ahead of Gold
Looking beyond the immediate price fluctuations, Bitcoin’s market capitalization has skyrocketed by an astounding 350,000% since its inception, far surpassing its traditional safe-haven counterpart, gold.
Emerging trends indicate that Bitcoin might be gearing up for another prolonged price surge, emphasizing its increasing dominance over the precious metal.
For the uninitiated, the BTC/GLD ratio monitors Bitcoin’s performance relative to gold, serving as a pivotal measure to assess Bitcoin’s acceptance and market cap supremacy, showcasing how the digital asset has consistently outperformed gold over time.
Delving deeper into this, Seasoned analyst Peter Brandt conveyed his perspective, mentioning,
Deciphering Brandt’s Insights
Brandt has forecasted a potential surge in the Bitcoin-to-gold (BTC/GLD) ratio by over 400% in 2025, propelled by a classic technical setup known as the inverse head-and-shoulders (IH&S).
This configuration materializes when a price chart displays three troughs, with the central trough (the head) being more pronounced than the two flanking troughs, known as the left and right shoulders.
These troughs manifest beneath a common support line named the neckline, serving as a pivotal breakout level.
Per technical analysis principles, an IH&S pattern is validated upon the price breaching the neckline, typically accompanied by escalating trading volumes.
This bullish breakout often triggers a rally equal to the maximum distance between the neckline and the lowest point of the head.
Applying this method to the BTC/GLD ratio diagram, Brandt envisioned an upside target of approximately 123, implying that one Bitcoin could be valued at 123 ounces of gold by 2025—an impressive surge from the current 24 ounces recorded as of September 2024.
Critics Challenge Brandt’s Analysis
While several individuals concurred with Brandt’s analysis, persistent Bitcoin skeptic Peter Schiff voiced a dissenting opinion.
Schiff contended that while technical patterns can be informative, they do not ensure definite outcomes.
He cautioned that there is always a possibility that the anticipated move—such as a substantial rise in the BTC/GLD ratio—might not materialize, potentially resulting in significant losses instead.
Most recently, Schiff also argued that Bitcoin does not meet the criteria for money, stating,
“Money should be the most readily exchangeable commodity and possess intrinsic value. Bitcoin lacks both. It functions for transactions and speculation purposes but falls short of being used as intended for money, akin to gold.”
Nevertheless, this statement faced stern opposition from Strike’s Jack Mallers, who aptly countered,
“BTC stands as the finest form of money in mankind’s history…It ranks supreme in scarcity with a fixed supply, boasts maximum portability, and is highly divisible…Over the past decade, Bitcoin has delivered an average annual return of 60%, while Gold has yielded a mere 2% return over the same timeframe.”