Will Bitcoin rise 400% against gold? What do senior analysts say?

Author: Yashu Gola, CoinTelegraph; Compiled by Baishui, Golden Finance

Compared to its traditional safe-haven rival gold, Bitcoin's market value has soared a staggering 350,000% since its inception.

New signals suggest that Bitcoin may be on the verge of another long-term price increase, portending renewed momentum for Bitcoin against the precious metal.

Bitcoin's exchange rate against gold could grow by more than 400% in 2025

The BTC/GLD ratio chart compares the performance of assets and can serve as a barometer of BTC's adoption relative to gold. For example, a rise in the ratio reflects Bitcoin's outperformance of gold in terms of market capitalization, and vice versa.

According to veteran market analyst Peter Brandt, the Bitcoin-to-gold ratio could rise by more than 400% by 2025. Brandt cited a classic technical pattern to express his extremely bullish outlook.

The pattern, known as an Inverted Head and Shoulders (IH&S), forms when price forms three consecutive troughs, with the middle trough — called the head — being deeper than the other two troughs, known as the left and right shoulders. The pattern forms below a common support line known as the neckline.

As a rule of technical analysis, the IH&S pattern resolves when price breaks above the neckline on rising volume. In the process, it rises to the maximum distance between the neckline and the deepest point of the head.

BTC/GLD weekly ratio chart. Source: Peter Brandt

Applying the same technical principles on the BTC/GLD ratio chart, its upside target would be around 123. In other words, the price of 1 BTC could be equal to 123 ounces of gold as early as 2025, up more than 400% from 24 ounces on September 22, 2024.

Bitcoin ETF Market to Grow to $220 Billion

The idea of ​​Bitcoin surpassing gold stems from its rapid popularity, especially among institutional investors, and the launch of Bitcoin exchange-traded funds (ETFs), which have strengthened Bitcoin's position in investment portfolios.

Since January 2024, the approval of Bitcoin ETFs has brought in more than $17.69 billion in inflows, and it is expected that by 2027, the Bitcoin ETF market could grow to $220 billion, based on the gold ETF as a benchmark.

In addition, experts such as Anthony Scaramucci believe that Bitcoin will eventually surpass the market value of gold in the next decade, pointing out that BTC has advantages such as scarcity and portability.