The Bitcoin/gold ratio shatters all records

The Bitcoin/gold ratio, a key indicator of the crypto’s purchasing power against the precious metal, reached an all-time high of 40 ounces of gold per BTC. This performance reflects the spectacular rise of BTC, which crossed the $106,000 mark today, December 16, consolidating its role as the “new digital gold.”

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

Today, December 16, the Bitcoin/gold ratio hit a new all-time high, marking 40 ounces of gold per BTC. This indicator, which divides the price of crypto by that of spot gold, highlights the meteoric rise of BTC, valued at $106,000, while gold remains at $2,650 per ounce.

This milestone reinforces the idea that Bitcoin is not only a store of value, but also an asset capable of rivaling gold, often seen as a hedge against inflation.

Veteran analyst Peter Brandt reported this record high on X (formerly Twitter), predicting a continued rise: “ Next stop will be 89 to 1 he said, anticipating that bitcoin could require 89 ounces of gold for a single BTC in the future.

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

Why is BTC outperforming gold today?

The historic overshooting of the BTC/gold ratio reflects several macroeconomic and technological trends. First, institutional adoption continues to propel bitcoin to all-time highs.

Since Jerome Powell, Chairman of the US Federal Reserve, called Bitcoin the “digital version of gold”, investor confidence in the asset has increased, triggering a new wave of buying.

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

Finally, increased volatility in traditional markets and inflation concerns have pushed many investors to diversify their portfolios with Bitcoin, often considered a modern safe haven.

In short, as bitcoin crosses historic highs and surpasses gold in terms of ratio, it confirms its status as a reference asset for investors looking for an alternative to the precious metal. With growing institutional adoption and strong fundamentals, Bitcoin appears well positioned to continue to redefine global financial standards.