The Bitcoin/Gold Ratio Is Breaking All Records

The Bitcoin/gold ratio, a key indicator of the purchasing power of cryptocurrency against the precious metal, has reached an all-time high of 40 ounces of gold per BTC. This performance reflects the spectacular rise of BTC, which surpassed the threshold of $106,000 today, December 16, solidifying its role as “digital gold.”

Bitcoin at an all-time high, 40 ounces of gold for one BTC

Today, December 16, the Bitcoin/gold ratio has reached a new record, marking 40 ounces of gold per BTC. This indicator, which divides the price of cryptocurrency by that of spot gold, highlights the remarkable performance of BTC, valued at $106,000, while gold remains at $2,650 an ounce.

This milestone reinforces the idea that Bitcoin is not just a store of value, but also an asset capable of competing with gold, often viewed as a hedge against inflation.

Veteran analyst Peter Brandt has reported this record on X (formerly Twitter), predicting a continued rise: “The next stop will be 89 to 1,” he stated, anticipating that Bitcoin might require 89 ounces of gold for a single BTC in the future.

This power surge is supported by influential figures like Cathie Wood, founder of ARK Invest, who believes that Bitcoin could still capture a significant share of the gold market, valued at around $15 trillion.

Why BTC surpasses gold today?

The historic surpassing of the BTC/gold ratio reflects several macroeconomic and technological trends. First, institutional adoption continues to propel Bitcoin to unmatched highs.

Since Jerome Powell, the chairman of the U.S. Federal Reserve, referred to Bitcoin as the “digital version of gold,” investor confidence in this asset has increased, triggering a new wave of purchases.

At the same time, the fundamentals of Satoshi’s invention are strengthening. Mining difficulty also reached a record level of over 105 trillion on December 15, making the extraction of new BTC more complex and increasing their scarcity. This mechanism, embedded in the Bitcoin protocol, continues to play a crucial role in the perception of crypto as a deflationary asset.

Finally, the increased volatility of traditional markets and concerns over inflation have led many investors to diversify their portfolios with Bitcoin, often considered a modern safe-haven asset.

In summary, as Bitcoin reaches historical highs and surpasses gold in terms of ratio, it confirms its status as a reference asset for investors seeking an alternative to the precious metal. With growing institutional adoption and solid fundamentals, Bitcoin seems well-positioned to continue redefining global financial standards.