Veteran trader Peter Brandt recently released his Bitcoin (BTC) price prediction, claiming that the decentralized digital asset will surge 230% against gold.
Brandt argued that the gold-to-BTC ratio will fluctuate over the next 12-18 months, eventually reaching a new high of 100 ounces of gold per BTC.
While it remains to be seen whether Brandt’s prediction proves correct, a comparison of the price history of BTC and gold shows that his comments are neither unfounded nor unrealistic.
Bitcoin has held an advantage against gold since its inception, but finally overtook the precious metal in terms of price in 2017. That year, Bitcoin hit a record high of $19,649 on December 17.
When gold trading resumed on December 18, 2017, the price reached $1,264 per ounce and closed the day at $1,261 per ounce. Based on these figures, it would have taken roughly 15.5 ounces of gold to purchase 1 BTC.
Since then, Bitcoin prices have remained well above the price of gold, even at the lowest point of the 2018-2019 bear market, when Bitcoin plummeted to a low of around $3,126 in December 2018.
Gold prices did rise during the same month, but only reached a high of approximately $1,283 by December 31, 2018.
Related: Bitcoin bull Pompliano says BTC will be bigger than gold and a “leader of the recovery”
In 2020, gold experienced another bull market, but it was briefly disrupted by the now infamous March 2020 market sell-off that was mirrored across a wide range of assets, including Bitcoin, as a result of the COVID-19 pandemic.
By August 2020, fears of a recession and surging inflation gripped the investor community, sending gold to an all-time high of around $2,075 an ounce.
Bitcoin traded sideways during this time, reaching levels around $12,341 during the month.
Both assets generally performed poorly in 2022 but recovered in 2023.
In May 2024, gold hit an all-time high of approximately $2,449 per ounce and is currently trading at approximately $2,320 per ounce, while Bitcoin has fallen to $67,210 as of this writing after hitting a high of approximately $74,000. Using current market prices, it would take approximately 29 ounces of gold to purchase 1 BTC.
magazine: Crypto Voters Are Already Disrupting the 2024 Election, and They’ll Continue to Do So.
