Bitcoin (BTC) has achieved a significant milestone today, surging above the $106,000 mark during early Asian trading hours. As the coin’s price breaks new records, the BTC-to-gold ratio has also reached a new peak.
While BTC’s price has since pulled back by 2% from its new high, bullish pressure remains in the market.
Bitcoin Outperforms Gold
During Monday’s early Asian session, Bitcoin’s price rose to a new all-time high of $106,533 amid the surge in trading activity. This price rally propelled the BTC-to-gold ratio to a peak of 40 gold ounces per coin.
The BTC-to-gold ratio compares the price of one Bitcoin to the price of gold, expressed in ounces. It measures how much BTC is worth in relation to a specific amount of gold, offering insight into Bitcoin’s relative value against the traditional store of value, gold.
When the ratio climbs, Bitcoin is becoming more valuable compared to gold, indicating increased investor confidence in Bitcoin as an asset.
In a December 16 X post, renowned trader Peter Brandt opined that the next target for this ratio is 89 to 1, meaning it would take 89 ounces of gold to purchase one Bitcoin.
Regarding what drives BTC’s rally,on-chain analytics platform Santiment highlighted in an X post that the coin’s sustained whale accumulation primarily fuels the price growth.
“Bitcoin has climbed to $106.5K for the first time in its 16+ year history. Since the bull rally began back on October 10th, there has been a net increase of 1,582 more wallets that hold at least 100 BTC, a jump of +9.9% more wallets in the relatively short period of time!” the data provider said.
BTC Price Prediction: A New High Could Be In Sight
At press time, BTC trades at $104,567, just below its new resistance at its recent price peak of $106,533. If BTC whales intensify their accumulation efforts, the coin’s price will reclaim this high and rally toward a new peak.
On the other hand, if profit-taking activity strengthens, BTC’s price may shed its recent gains and drop to $94,344. If this support level weakens, the coin’s price may slip below $90,000 to trade at $84,776.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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Abiodun Oladokun
https://beincrypto.com/btc-to-gold-ratio-surge/
2024-12-16 13:30:00
