Experienced trader Peter Brandt recently made a bold price prediction for Bitcoin (BTC), stating that the decentralized digital asset would surge 230% against gold.
Brandt believes that the ratio of gold to BTC will fluctuate over the next 12-18 months before eventually reaching a new high of 100 ounces of gold per BTC.
While it remains to be seen if Brandt’s prediction will come true, a comparison of the price history of BTC and gold suggests that his comments are not unfounded or unrealistic.
Since its inception, Bitcoin has been gaining ground against gold and finally surpassed the precious metal in terms of price in 2017. During that year, Bitcoin reached its peak at $19,649 on December 17.
When gold resumed trading on December 18, 2017, it was priced at $1,264 per ounce before closing at $1,261 per ounce. Based on these numbers, it took approximately 15.5 ounces of gold to purchase 1 BTC.
Since then, the price of Bitcoin has consistently remained above the price of gold, even during the lowest points of the 2018-2019 bear market when Bitcoin dropped to a low of around $3,126 in December 2018.
During the same month, gold experienced some price increases but only reached a high of around $1,283 by December 31, 2018.
In 2020, gold experienced another bull run that was briefly interrupted by the market drop in March 2020 caused by the COVID-19 pandemic, which affected various assets including Bitcoin.
By August 2020, gold had reached a new all-time high of around $2,075 per ounce as investors became concerned about recession and runaway inflation. During the same month, Bitcoin traded sideways but reached levels around $12,341.
Both assets had a generally poor performance in 2022 but managed to recover in 2023.
In May 2024, gold reached an all-time high of approximately $2,449 per ounce and is currently trading at around $2,320 per ounce. Meanwhile, Bitcoin reached a high of around $74,000 before decreasing to $67,210 at the time of writing. Based on the current market prices, it would take approximately 29 ounces of gold to purchase 1 BTC.
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