BTC Could Outperform Gold by 122%

• The market’s expectation of a US BTC reserve jumped by 10 points.

Bitcoin (BTC) has outperformed gold since November, with analysts projecting an additional 122% rally against the precious metal.

According to renowned technical chartist and trader, Peter Brandt, one may soon need 89 ounces of gold to purchase a single BTC coin. Brandt’s projection is based on a bullish cup and handle formation on the BTC/gold ratio chart.

BTC/Gold Performance

The BTC/gold ratio tracks BTC’s relative performance against gold, recently reaching a new high of 39 and breaking above resistance, paving the way for a potential bullish target of 89.

Since November, BTC has outperformed gold by 60%, with the BTC/GLD ratio soaring from 25 to 40. This remarkable performance was propelled by pro-crypto Donald Trump’s victory in the US presidential elections.

One of the pledges from Trump’s administration is to establish a national BTC reserve, and many market analysts believe this could occur on day one of his presidency. Strike CEO Jack Mallers indicated that the president-elect was considering a ‘day 1 executive order for a BTC reserve.’

This move could enhance Brandt’s breakout prediction of 89 for the BTC/gold ratio, implying a value of about $230K per BTC if realized. Currently, prediction markets are pricing a 35% chance of Trump creating a BTC reserve within his first 100 days, marking a 10% increase from the previous week, reflecting growing optimism in the market.

If established, BTC could potentially rival gold as a global reserve asset. Although it remains uncertain whether Brandt’s $230K per BTC target will be achieved during this cycle, many asset managers are targeting $150K-$200K.

Meanwhile, BTC reached a new all-time high of $106.6K and was valued at $105K ahead of the Federal Reserve’s rate decision scheduled for December 18th.