In 2025, digital gold could potentially increase fivefold in value compared to its physical counterpart. This conclusion was drawn by technical analyst and head of Factor LLC, Peter Brandt.
When I look at chart of Bitcoin/Gold ratio, here is how I view it: $GC_G $BTC $BTCXAU
1. Continuation inverted H&S pattern, neckline at 32.5 to 1
2. Left shoulder low at 14.2 to 1
3. Right shoulder forming flag
4. Could decline into high teens to 1
5. Target 123 to 1 pic.twitter.com/VKvsDqwkuU— Peter Brandt (@PeterLBrandt) September 21, 2024
The expert based his opinion on the formation of an “inverted head and shoulders” pattern on the chart of the two assets’ ratio. For its realization, it is necessary for quotes to consolidate above the “neckline” with increased trading volume. This would create the potential for further movement over the distance between this benchmark and the lowest point of the “head.”
Applying this principle to the BTC/GLD chart, the growth target is approximately 123 (+400%). In other words, one coin would be valued at 123 ounces of gold compared to 24 ounces at the time of writing.
On September 23, the price of the yellow metal set a new record of $2630 amid the Federal Reserve’s policy easing and rising geopolitical tensions in the Middle East. Over the past two weeks, the asset has risen by more than 5%.
Earlier, Euro Pacific Capital President Peter Schiff noted that the first cryptocurrency has not updated its ATH since March, unlike gold.
Back in a previous statement, former BitMEX CEO Arthur Hayes called bitcoin a more reliable safe-haven asset than the precious metal, due to the absence of national control.
According to Bitfinex, the first cryptocurrency is capable of protecting investors’ capital during an economic downturn, although the digital asset market may suffer.