Bitcoins’ recent surge to new highs has driven its price against gold up to record-breaking levels, as institutional investors pile in to the digital currency towards the end of this year.
The ratio, which measures how many ounces of gold one Bitcoin can buy, reached unprecedented levels Monday, rising to 37.3, which means one Bitcoin can now buy roughly 37 ounces of gold—a new historic high.
It is roughly a half-point higher than the reading attained during November 2021, when crypto was experiencing its previous bull market.
"Hitting a new high signals the continued adoption and maturation of Bitcoin as an asset class," Sidney Powell told us what he, as the co-founder and CEO of Maple Finance’s institutional capital marketplace, said. Decrypt. "We expect to see the ratio catch up based on the tailwinds of ETF inflows, which history shows increase over time, and bitcoin increasingly being viewed as a staple part of balanced portfolios."
Calculated by dividing Bitcoin's price by the spot price of gold per ounce, iIt is used to compare the relative strengths and preferences of investors between two assets.
The ratio reinforces Bitcoin's status as digital gold, positioning it as an "increasingly favored store of value over traditional gold," The Singaporean digital asset trader QCP Capital published a memo on Monday.
Even so, gold is still the preferred option for traders during uncertain times over Bitcoin. Bitcoin has also become more closely correlated with traditional markets thanks to U.S. Bitcoin Exchange-Traded Funds, approved in January.
Coinglass data shows that the global Bitcoin ETF asset management has reached $119 Billion. Shown Below. This is less than half of gold-backed ETFs' $290 billion as of November 2024, according to The following are some of the most effective ways to increase your ROI: World Gold Council
Bitcoin's code limits its maximum supply to 21 million tokens and includes halving events that periodically reduce new supply by 50%, ensuring the final Bitcoin won't be minted until approximately 2140.
Its programmed scarcity contrasts with gold's continuous mining production, though both assets are frequently compared as stores of value due to their limited supply characteristics.
In any case, while gold maintains lower volatility—around 20% annually—and benefits from its 3,500-year history as a traded asset, Bitcoin offers higher return potential despite more significant price swings, with volatility near 50%.
Sebastian Sinclair edited the book