Bitcoin-to-Gold Ratio Hits Record High as BTC Reaches New Peak

The Bitcoin to gold ratio reached a record high of 40 gold ounces per BTC as the Bitcoin price surpassed $106,000 on December 16.

The Bitcoin to gold ratio, one of the primary measures used to measure Bitcoin's purchasing power compared to gold, reached a new all-time high (ATH) as the BTC price set new records.

Peter Brandt, a veteran futures forex trader, reported on December 16 that the Bitcoin (BTC) to gold ratio had reached a new high.

The Bitcoin to gold ratio is a statistic that divides the price of Bitcoin by the cost of spot gold, indicating how many ounces of gold are required to purchase one BTC.

On December 16, the ratio reached a fresh high of 40 gold ounces per BTC as Bitcoin surged beyond $106,000 for the first time, with spot gold (XAU) trading above $2,650.

“Next stop will be 89 to 1”

Brandt voiced confidence in the further growth of the BTC to gold ratio, citing the new historic milestone.

"Next stop will be 89 to 1 — it will require 89 ounces of gold [to buy 1 BTC]," according to Brandt.

Brandt's projection is consistent with a standard narrative within the cryptocurrency community, emphasizing Bitcoin's potential to profit from gold's $15 trillion market.

Bitcoin is now priced at $104,690, with a market value of over $2.1 trillion. According to Cathie Wood, founder of ARK Invest and a Bitcoin bull, the market capitalization discrepancy between the two currencies provides Bitcoin with significant growth potential.

Wood's comments come shortly after US Federal Reserve Chair Jerome Powell referred to Bitcoin as a digital form of gold after the cryptocurrency surpassed the $100,000 price mark on December 5.

Bitcoin Completes Final Difficulty Adjustment of 2024

The new record in the Bitcoin to gold ratio comes as mining fresh Bitcoin becomes more difficult.

According to CoinWarz data, the Bitcoin mining difficulty — which refers to the difficulty level of finding the correct hash for each block on the Bitcoin blockchain — reached a new historic high of more than 105 trillion on December 15.

The subsequent Bitcoin mining difficulty adjustment, which occurs every 2,016 blocks, or approximately every 14 days, is slated for January 1, 2025.