In the world of digital assets, Bitcoin’s only valid rival, apart from Ethereum, is often considered to be gold. Until now, many analysts and experts have continued to draw comparisons between these two assets, especially to see what price Bitcoin would trade at if it had the same market value as gold.
Speaking on a similar topic, Peter Brandt, a trading guru with decades of experience in the trading space, recently shared insights, focusing his analysis on the ongoing rivalry between Bitcoin and gold, positioning them as contenders for the coveted title of “ultimate store of value.”
Notably, the insights shared by Brandt were not just about market capitalization or investor preference; delved particularly into the core functionalities and inherent values of each asset.
Bitcoin vs. Gold
Digging deeper into the insight, it’s worth understanding the nuances of comparing BTC to gold – a “classic safe haven asset.” Brandt’s recent examination of the Bitcoin/gold ratio provides a critical metric for this comparison.
He highlighted that the current index is at 26, suggesting that Bitcoin, despite its volatility, maintains a strong position relative to gold.
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This ratio, Brandt points out, can fluctuate significantly, potentially decreasing to as low as 16 in response to market movements, without harming Bitcoin’s profitability.long-term potential climb much higher.
Peter Brandt’s analysis goes beyond mere speculation. He emphasizes the importance of flexibility in investment strategies, especially when it comes to assets as volatile as Bitcoin and as stable as gold.
The “store of value” battle is historic
The BTC/Gold chart is a classic example of classical charting principles
Flexibility of interpretation is more important than dogmatism.
Currently at 26.x, $BTC could (could, will not) fall significantly against Gold to as low as 16 without… pic.twitter.com/gduy0fTRtE-Peter Brandt (@PeterLBrandt) August 1, 2024
According to Brandt, the main takeaway from his analysis is the potential for the BTC/gold ratio to experience significant changes. For example, while the ratio may decline in the short term, Brandt’s long-term view suggests it could rise to 150 or more.
This perspective is not just about defending Bitcoin, but about defending a balanced investment approach. Brandt advises investors to hold both Bitcoin and gold, highlighting the benefits of diversification. By investing in both, traders can mitigate the risks associated with cryptocurrency volatility and the often slower gold market.
Brandt noted:
I believe in owning gold and Bitcoin. Being dogmatic about either is like FOOL’S gold.
BTC and Gold Market Performance
Meanwhile, last week, Bitcoin was down, drop of 7.1% in the past 24 hours and is up about 14.8% from its peak above $73,000 in March.
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This negative price performance of the asset has resulted in BTC currently trading at a price of $62,642, at the time of writing.
Gold, on the other hand, has seen a surge over the past week. The asset is currently trading at $2,424 – a slight pullback from its previously renewed all-time high (ATH) of $2,483 on July 17.
Featured image created with DALL-E, chart from TradingView
