Peter Brandt shared a shift in the Bitcoin-to-gold ratio that he believes could signal a bullish trend for Bitcoin.
You might say it’s an actual golden cross moment, and if history is any guide, this could mean big things for Bitcoin’s price.
A brief pause in the rally
After a smaller dip earlier this week, where Bitcoin took a breather on Monday and Tuesday, it’s back on track following the rally.
Just last month, Bitcoin surged from around $68,000 to a record high above $100,000 in 30 days. So, that little pullback? Just the cryptocurrency catching its breath before the next big sprint.
In 2024, Bitcoin hasn’t only outperformed stocks and bonds but has also left gold in the dust, and now Brandt pointed out that a key metric related to the Bitcoin-to-gold ratio just flashed a bullish signal.
This could be pretty great news for crypto users who are hoping for a sustained bull run through 2025.
Let there be bull run
As Bitcoin’s price danced around an important trend line in the Bitcoin-to-gold ratio, breaking through this resistance could validate the optimism of long-term crypto bulls, and following a record week for Bitcoin ETF inflows, Wall Street is clearly more excited about Bitcoin than ever. In fact, BTC prices rallied over 5.5% in just 24 hours.
This momentum suggests that we might be on the verge of crossing a four-year resistance line in the Bitcoin-to-gold ratio, and if this really happens, it could bring an even more bullish trend than what we’ve seen over the past year.
Bitcoin vs gold
While some market watchers expect BTC’s price to rise simply because the Fed keeps printing more dollars, its impressive performance against gold is noteworthy.
Gold is up another $32 today, trading just below $2,700 per ounce. More significantly, it's at a new record-high priced in Australian dollars. A lot of #gold mines operate in Australia. With their local labor costs falling relative to gold, profits should be considerably higher.
— Peter Schiff (@PeterSchiff) December 10, 2024
This is particularly interesting given that gold is finite as far as we know and can’t be created cheaply. But on the other hand, there are newfound gold reserves in the world.
Peter Schiff, founder of Euro Pacific Capital and a well-known gold advocate, often criticizes Bitcoin and insists that gold is the better investment, Ray Dalio, founder of Bridgewater Associates advised everyday investors to ditch bonds and consider swapping them for Bitcoin and gold.
