Bitcoin Struggles to Outperform Gold Despite Institutional Growth

Peter Brandt, a well-known commodity trader, has pointed out a surprising trend in the market: despite Bitcoin’s growing institutional adoption and the excitement surrounding Bitcoin ETFs in 2024, it hasn’t managed to outperform gold.

In fact, the cryptocurrency, which is the leader in market cap, has struggled to separate itself from the yellow metal, a performance that Brandt finds unexpected.

Just last week, the Bitcoin -to-gold ratio reached its lowest point since November, marking a significant drop of over 19% from the December peak of 41 ounces.

Brandt had initially predicted a ratio of 89 ounces as the next milestone, but the current trend is challenging that forecast.

Meanwhile, gold is inching closer to setting a new all-time high, currently hovering around $2,827 per ounce. Having surged by more than 11% from a recent low, gold reached $2,886 on February 7, continuing its impressive rally.

Gold’s recent dominance could challenge the narrative that Bitcoin is on track to become the ultimate store of value.

Some Bitcoin supporters, including former Meta executive David Marcus, have even called on the U.S. government to shift its reserves from gold to Bitcoin, arguing that the digital asset would offer better returns. However, Bitcoin’s inability to break free from gold’s grip over the past few years calls that vision into question.