Key Points
- Bitcoin [BTC] is outperforming gold, with an analyst predicting an additional 122% rally against the global reserve asset.
- The market’s expectation of a US BTC reserve has increased by 10 points.
Bitcoin [BTC] has been outperforming gold since November, with predictions of an extra 122% rally against the global reserve asset.
According to technical chartist and trader, Peter Brandt, one might soon need 89 ounces of gold to buy 1 single BTC coin.
Brandt’s Projection
Brandt’s projection is based on the bullish cup and handle formation on the BTC/gold ratio chart.
The BTC/gold ratio, which tracks the relative performance of BTC against gold, recently hit a new high of 39 and broke above resistance, which could make the bullish 89 target possible.
Since November, BTC has outperformed gold by 60%, with the BTC/GLD ratio soaring from 25 to 40.
The impressive BTC performance was accelerated by the win of pro-crypto Donald Trump in the US presidential elections.
US BTC Reserve
One of the upcoming administration’s pledges was to set up a national BTC reserve, which many market insiders believe could happen on day 1.
According to Strike CEO Jack Mallers, the president-elect was exploring a ‘day 1 executive order for a BTC reserve.’
This could accelerate Brandt’s breakout projection of 89 for the BTC/gold. This implied about 230K per BTC if hit.
At press time, prediction markets were pricing a 35% chance of Donald Trump creating a BTC reserve within the first 100 days of his administration.
This was a 10% jump from last week’s odds, suggesting the market was increasingly optimistic of such an outcome.
If created, BTC could aggressively compete with gold as a global reserve asset.
Whether Brandt’s $230K per BTC target will be hit this cycle remains to be seen.
Most asset managers had a $150K-$200K price target for this cycle.
Meanwhile, BTC hit a new all-time high of $106.6K and was valued at $105K ahead of the Fed rate decision on the 18th of December.
