The new record of 40 gold ounces per BTC was registered just as the “digital gold” was being traded at over $106K per Bitcoin.
On Dec. 16, the gold to Bitcoin radio peaked at a new all-time high of 40 gold ounces per BTC, while spot gold (XAU) was trading at around $2,650.
The indicator is one of the key metrics illustrating the crypto’s purchasing power. It is measured by comparing the value of Bitcoin to the value of gold. Specifically, the ratio calculates how many ounces of gold are needed to purchase one Bitcoin at current prices. At the moment of the registered record, BTC was traded at over $106K, though it has undergone some correction since, now trading at $103,790.
The ratio’s climb reflects Bitcoin’s increasing role as a potential alternative to gold, with some experts in the crypto community, including the veteran futures forex trader Peter Brandt who made the record public, predicting further growth in this metric.
The crypto started its current bull run at a $75K mark fueled by the outcomes of the U.S. elections which brought crypto enthusiasts hopes for a favourable legal and economic environment, as well as government-backed promotion of crypto assets. Despite the overall growth of the crypto market and numerous tokens available for trading, Bitcoin remains the top choice for investors across the globe.
Bitcoin’s scarcity is a key feature that underpins its value proposition, mimicking the finite resources of precious metals like gold or silver. The cryptocurrency supply is inherently limited due to the protocol’s design. The maximum number of Bitcoins that can ever be mined is 21 million. As of December 2024, approximately 19.44 million Bitcoins have already been mined, with the last Bitcoin expected to be dropped to market around 2140.
