1239 days ago
Is Bitcoin going for the Gold?
Since Election Day, bitcoin has now rallied more than 14%. Below is a chart from Bespoke which exhibits the ratio of bitcoin to physical gold. Both assets are essentially considered stores of value, so it's interesting to see how accepting investors become of 'digital gold' over time. Obviously, there are a lot of other factors at play that impacts both assets, but the chart below provides a rough approximation. At current levels, one bitcoin will buy about 8.5 ounces of gold. That's not far from the most recent peak of just under 9.0 back in July 2019. If and when the ratio breaks above that level, the next level to watch would be the record high of 14.8 in December 2017. Based on gold's price now, that would translate to a price of about $27,500. While there are plenty of arguments to be made in favor of the long-term prospects for bitcoin, Bespoke notes that even for a volatile asset like bitcoin, the rally of the last week or so has been on the extreme side. Just last week the ratio between bitcoin and gold was around 7.5, but in the span of a week, one bitcoin will buy once ounce more gold than it did just last week - source: Bespoke
