Key Points
- Bitcoin (BTC) has outperformed gold since November, with analysts predicting an additional 122% rally.
- Expectations of a US Bitcoin reserve have increased by 10 points, potentially making Bitcoin a global reserve asset.
Bitcoin Outperforms Gold
Bitcoin [BTC](https://staging.btcnews.com/price/bitcoin/) has shown impressive performance against gold since November. Peter Brandt, a well-known technical chartist and trader, suggests that it might soon take 89 ounces of gold to purchase a single Bitcoin.
This projection is based on the bullish cup and handle formation on the Bitcoin/gold ratio chart. The ratio, which measures Bitcoin’s performance relative to gold, recently reached a new high of 39, breaking above resistance and potentially making the 89 target possible.
Bitcoin as a Global Reserve?
Bitcoin’s performance against gold has increased by 60% since November, with the Bitcoin/gold ratio soaring from 25 to 40. This surge was accelerated by Donald Trump’s pro-crypto victory in the US presidential elections.
The incoming administration has pledged to establish a national Bitcoin reserve, a move that many market insiders believe could happen on the first day. Jack Mallers, CEO of Strike, suggested that the president-elect was considering a ‘day 1 executive order for a Bitcoin reserve.’
If this happens, it could speed up Brandt’s projection of 89 for the Bitcoin/gold ratio, implying a Bitcoin price of about $230K. Prediction markets currently place a 35% chance on Donald Trump creating a Bitcoin reserve within his administration’s first 100 days.
This is a 10% increase from last week’s odds, indicating growing market optimism for this outcome. If realized, Bitcoin could potentially rival gold as a global reserve asset.
Whether Bitcoin will reach Brandt’s target of $230K remains uncertain. However, most asset managers have set a price target of $150K-$200K for this cycle. Currently, Bitcoin has reached a new all-time high of $106.6K and is valued at $105K ahead of the Federal Reserve’s rate decision on December 18th.
