Experienced trader Peter Brandt recently made a bold prediction about the price of Bitcoin (BTC), stating that the decentralized digital asset would see a remarkable 230% surge compared to gold.
Brandt believes that the ratio between gold and BTC will fluctuate over the next 12 to 18 months before eventually reaching a new high of 100 ounces of gold per BTC.
Although it remains to be seen whether Brandt’s prediction will come true, a comparison of the price histories of BTC and gold suggests that his comments are not unfounded or unrealistic.
Since its inception, Bitcoin has been steadily 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 figures, 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 upward price movement but only reached a high of around $1,283 by December 31, 2018.
In 2020, gold witnessed another bull run that was temporarily disrupted by the infamous market drop in March 2020 caused by the COVID-19 pandemic, which affected a wide range of assets including Bitcoin.
By August 2020, gold had reached a new all-time high of around $2,075 per ounce due to fears of recession and runaway inflation in the investor community. Meanwhile, Bitcoin remained relatively stable during this period, reaching levels around $12,341.
Both assets had a generally poor performance in 2022 but managed to rebound in 2023.
In May 2024, gold hit a new all-time high of approximately $2,449 per ounce and is currently trading at around $2,320 per ounce. On the other hand, Bitcoin reached a high of around $74,000 before dropping back down to $67,210 at the time of writing. With the current market prices, it would take approximately 29 ounces of gold to purchase 1 BTC.
Overall, the market dynamics between Bitcoin and gold have shown interesting trends, and Brandt’s prediction suggests that Bitcoin may continue to outperform gold in the future.