Bitcoin-gold relationship reaches bullish tipping point

Bitcoin had a brief hiccup for two days, Monday and Tuesday, against the backdrop of a huge month-long bull rally for the cryptocurrency.

Most recently, BTC absolutely melted from $68,000 in early November to an all-time high above the $100,000 level in about 30 days. But the brief pullback may have just been the little orange coin breathing for its next chart sprint.

While Bitcoin has massively outperformed stocks and bonds in 2024, it has also notably outperformed price gains in spot gold markets. Legendary technical market analyst and futures trader Peter Brandt noted on Tuesday that a key BTC metric just showed a promising bullish sign.

Legendary Chart Analyst Notes Bullish BTC Metric

The Bitcoin/Gold $BTThe /$GC_F ratio has stumbled at a crucial level, with strong resistance in the 36-37 to 1 range pic.twitter.com/GZeYaGMTuf

— Peter Brandt (@PeterLBrandt) December 11, 2024

While BTC price stuttered into the reversal zone around the key trendline via the Bitcoin-Gold ratio, a decisive push above resistance here is further validation for long-term crypto bull expectations of a prolonged bull run for the asset. 2025

After a record week for Bitcoin ETF inflows, the Wall Street crowd has never been more excited for Bitcoin. Additionally, BTC prices recovered easily on Wednesday with a 24-hour candle above +5.5%, according to data from CoinMarketCap.

As a result, the market looks poised to cross the four-year Bitcoin-to-Gold resistance line, signaling a potentially massively bullish trend shift to even more bullish than the past 12 months.

BTC price continues to outperform Schiff’s favorite asset

Gold is up another $32 today, trading just below $2,700 an ounce. More importantly, it is at a new record price in Australian dollars. many #or mines operate in Australia. With their local labor costs falling relative to gold, profits should be considerably higher.

— Peter Schiff (@PeterSchiff) December 10, 2024

Markets could expect the price of BTC to rise in dollars because the Fed always prints more. But the surge against gold is really impressive, which is why this chart from a recent post on the Bitcoin subreddit isn’t exactly right.

Planet Earth has a scarce supply of gold, and there is no publicly known method of creating the metal that wouldn’t cost a lot more money than the market value of gold, using nuclear fusion. Therefore, the appreciation of the Bitcoin market against spot gold valuations shows that its growth is more than the inflation of the dollar.

Euro Pacific Capital founder and chief strategist Peter Schiff is a vocal critic of Bitcoin and says gold is better.

Meanwhile, Bridgewater founder and chief investment officer Ray Dalio recently told regulatory investors to ditch bonds and slide into Bitcoin and gold.

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