Bitcoin Tops $106K, Outpaces Gold with All-Time High Purchasing Power

The Bitcoin-to-gold ratio, a key metric measuring Bitcoin’s purchasing power relative to gold, has reached a new all-time high (ATH) as Bitcoin’s price surges to record-breaking levels.

Veteran futures trader Peter Brandt revealed the development in a Monday post on X , noting that the ratio had climbed to an ATH of 40 ounces of gold per 1 BTC.

The milestone reached as Bitcoin’s price soared past $106,000 , while spot gold (XAU) traded around $2,650 per ounce.

What Is the Bitcoin-to-Gold Ratio?

The Bitcoin-to-gold ratio is calculated by dividing Bitcoin’s price by the spot price of gold. This metric provides insight into Bitcoin’s relative purchasing power compared to gold, often seen as a traditional store of value.

Brandt suggested that the ratio could climb even higher, predicting a future target of 89 ounces of gold per Bitcoin.

“Next stop will be 89 to 1 — it will require 89 ounces of Gold (purchased at a rip-off premium from Shifty-Schiff SchiffGold to buy a single Bitcoin.”

This comes amid a growing belief within the cryptocurrency community that Bitcoin could capture a larger share of gold’s $15 trillion market.

Supporters argue that Bitcoin’s digital nature, scarcity, and decentralized attributes position it as a modern alternative to gold.

Bitcoin’s current market value is around $2.1 trillion, significantly lower than gold’s total market capitalization.

Bitcoin and gold market cap comparison | Source: IGWT report

Last week, MicroStategy’s Michael Saylor asked the United States government to sell its gold and buy Bitcoin instead.

The U.S. government is publicly known as one of the largest nations with gold as its reserve, accounting for 72% of the total.

Based on TradingEconomics data , the U.S. owns 8,133 tons of gold and dominates international commodity trading.

However, Michael Saylor urged the government not to buy more gold but to buy more Bitcoin for future assets against inflation.

As a national reserve, he believes Bitcoin will rise to trillions of dollars.

“Dump your gold, sell all the U.S. gold, and buy Bitcoin because you can buy 5 million Bitcoin for the cost of the gold. You’ll demonitize the entire gold asset class and our enemies hold gold in their banks, and so their asset would go to zero, while our asset go to trillion dollars.”

Bitcoin Mining Difficulty Hits New Record

Adding to the momentum, Bitcoin’s mining difficulty has also hit a new record.

On December 15, Bitcoin’s mining difficulty rose above 105 trillion, according to data from CoinWarz.

Mining difficulty, which adjusts roughly every 14 days, determines how challenging it is for miners to find a valid hash for a new block. The next adjustment is scheduled for January 1, 2025.

As reported, Jack Dorsey’s Block has also announced plans to ramp up investments in its Bitcoin mining initiative and self-custody Bitcoin wallet.