Experienced trader Peter Brandt has made a bold prediction about the future value of Bitcoin compared to gold, stating that BTC will soon reach a level where it is worth 100 ounces of gold, which is currently valued at $234,400.
The BTC/GLD ratio, which measures Bitcoin’s value in relation to gold, has been on the rise as Bitcoin consistently outperforms the precious metal. As Bitcoin gains more popularity and widespread adoption, this ratio has become a way to compare the leading cryptocurrency to the traditional safe-haven asset.
Currently, it takes approximately 29.1 ounces of gold, worth over $68,000, to buy one Bitcoin. However, Brandt believes that Bitcoin will appreciate significantly against gold in the near future, causing this ratio to increase even further.
To support his forecast, Brandt analyzed historical trends and found that since its launch, Bitcoin has consistently gained ground against gold. The chart provided shows the evolution of the ratio over time, with periods of rapid growth followed by corrections. Since 2011, BTC has gained an impressive 375,383% against gold.
Despite this impressive performance, Brandt believes that Bitcoin still has room to grow. He uses technical tools such as moving averages and the Relative Strength Index (RSI) on the weekly BTC/GLD chart to support his analysis. Currently, the BTC/GLD ratio is above the 18-week and 28-week moving averages, which are currently at the 28 ounce mark. This indicates a strong bullish momentum for Bitcoin.
The weekly RSI also confirms the growing strength of BTC against gold, hovering around the upper boundary of the 61 threshold. This suggests that Bitcoin is slowly approaching overbought territories, and a push above 70 would indicate a potential reversal to the downside.
Brandt anticipates that the BTC/GLD ratio will stabilize within the current range for the next 12 to 18 months. This is a common period of consolidation after significant price movements, allowing the market to digest gains and prepare for the next phase. After this consolidation phase, Brandt predicts a strong upward movement, with Bitcoin reaching a point where it is equivalent to 100 ounces of gold. Based on the current price of gold, this would value Bitcoin at $234,400, representing a massive 243% increase from its current price.
Brandt has always believed that Bitcoin will continue to outperform gold. So far this year, BTC is up 42% against gold, with four monthly gains out of five. In March, Bitcoin reached a peak of 34.08 ounces amid its surge to a new all-time high above $73,000, but experienced a correction in April with a 16.51% decline.
On April 2, when BTC traded at 28.9 ounces of gold, Brandt stated that Bitcoin would remain superior to gold in the long term. Interestingly, this statement came at a time when Bitcoin had dropped below the 30 ounce level, declining by 7.39% that day. Since then, the BTC/GLD metric has remained within a range.
Currently, BTC is trading at $68,333, a slight increase of 0.65% in the past 24 hours. Meanwhile, an ounce of gold is trading flat at $2,344. This brings the BTC/GLD ratio to 29.1, showing a slight increase today.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not responsible for any financial losses incurred.