Bitcoin’s market capitalization has skyrocketed by an astounding 350,000% since its inception compared to its traditional safe-haven rival, gold.
New signals suggest that Bitcoin (BTC) may be on the verge of another extended price rally, signaling renewed momentum against the precious metal.
Bitcoin may grow over 400% against gold in 2025
The BTC/GLD ratio chart compares the assets’ performance and could serve as a barometer to gauge BTC’s adoption rate compared to gold. For instance, the rise in the ratio reflects Bitcoin outperforming gold in terms of market cap performance and vice versa.
According to veteran market analyst Peter Brandt, the Bitcoin-to-gold ratio may rise by more than 400% in 2025. Brandt cites a classic technical pattern for his extremely bullish outlook.
Dubbed inverse head-and-shoulders (IH&S), the pattern develops when the price forms three consecutive troughs, with the middle trough — called the head — deeper than the other two, called the left and right shoulders. The pattern forms beneath a common support line called the neckline.
As a rule of technical analysis, an IH&S pattern resolves when the price breaks above the neckline while accompanying a rise in trading volumes. In doing so, it rises by as much as the maximum distance between the neckline and the head’s deepest point.
BTC/GLD weekly ratio chart. Source: Peter Brandt
Applying the same technical principle on the BTC/GLD ratio chart brings its upside target to around 123. In other words, the price of 1 BTC may equal 123 ounces of gold as early as 2025, up by over 400% compared to 24 ounces as of Sept. 22, 2024.
Bitcoin ETF market set to grow to $220B
The idea of Bitcoin overtaking gold has been fueled by its rapid adoption, particularly by institutional investors and the launch of Bitcoin exchange-traded funds (ETFs), which have bolstered Bitcoin’s presence in investment portfolios.
The approval of Bitcoin ETFs has resulted in inflows of over $17.69 billion since January 2024, with projections that the Bitcoin ETF market could grow to as much as $220 billion by 2027, using gold ETFs as a benchmark.
Related: First gold ETF took 2 years to hit $10B, this Bitcoin ETF did it in 2 months
In addition, experts like Anthony Scaramucci argue that Bitcoin will eventually surpass gold’s market capitalization within the next decade, citing BTC’s advantages, such as scarcity and portability.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.