A Well-Known Analyst Sets A Target For Bitcoin Based On Gold Prices

Posted on June 5, 2024 7:58 AM
Cryipto News
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Veteran trader Peter Brandt recently shared a price prediction for Bitcoin (BTC), suggesting that the leading cryptocurrency could increase by 230% against gold.

Brandt indicated that within the next 12-18 months, the ratio of gold to BTC would rise, reaching a new peak of 100 ounces of gold per Bitcoin.

While the accuracy of Brandt's forecast remains to be seen, an examination of Bitcoin and gold's historical price movements suggests that Brandt's predictions are not without merit.

Historically, Bitcoin has appreciated against gold and surpassed it in value in 2017. That year, Bitcoin reached $19,649 on December 17th.

Gold, on the other hand, resumed trading on December 18, 2017, with a daily close of $1,261 per ounce, peaking at $1,264. At that time, approximately 15.5 ounces of gold were needed to buy 1 BTC.

Since then, Bitcoin's price has remained above gold's, even during the bear market lows of 2018-2019; for instance, in December 2018, when Bitcoin dropped to around $3,126.

During the same period, gold experienced an upward trend but only reached $1,283 by December 31, 2018.

In 2020, gold experienced a bull rally interrupted briefly by the COVID-19 pandemic and the March 2020 market crash.

By August 2020, amid recession and inflation fears, gold hit an all-time high of around $2,075 per ounce.

During this period, Bitcoin traded relatively flat, reaching around $12,341.

Both assets performed poorly in 2022 but managed to recover in 2023.

In May 2024, gold hit an all-time high of approximately $2,449 per ounce and is currently trading at around $2,320 per ounce. Bitcoin, on the other hand, had reached around $74,000 before falling to $67,210 at the time of writing. Based on current prices, around 29 ounces of gold are needed to purchase 1 BTC.

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