Key Points
- Bitcoin’s price is predicted to reach $108K as its value surpasses that of gold.
- Bitcoin ETFs are expected to surpass gold amid rising institutional interest.
Bitcoin has hit a new all-time high, with the total market cap of the cryptocurrency peaking at $3.67 trillion. As buying pressure continues to increase, experts anticipate further growth into uncharted price levels.
Meanwhile, other cryptocurrencies, such as Ethereum, are also gaining momentum, with Ethereum’s price exceeding $4,000. As the bullish pressure mounts, the price gap between Bitcoin and gold continues to widen.
Bitcoin’s Worth Surpasses Gold
With Bitcoin recording a new all-time high, the Bitcoin-to-gold ratio has also reached a new peak. The ratio currently stands at 40.04, indicating that nearly 40 ounces of gold are required to purchase a single Bitcoin.
Independent chart trader, Peter Dant, highlighted the new all-time high for the Bitcoin-to-gold ratio in a recent tweet. The significant rally and short-term surge have resulted in a price increase of over 10% in the past five days.
Dant’s chart analysis suggests that the Bitcoin-to-gold ratio could potentially reach 89.33 in the future. This implies that a single Bitcoin could be worth 89 ounces of gold, underscoring its rising dominance over traditional assets.
Bitcoin ETFs Outperform Gold
HODL 15 Capital recently shared that BlackRock’s iShares Bitcoin ETF (IBIT) has become the second-best-performing US ETF. This milestone further validates institutional interest in Bitcoin as an asset class.
With assets under management (AUM) worth $54.983 billion, IBIT has surpassed the iShares Gold Trust, which manages $34.205 billion. Second only to SPDR Gold Shares (GLD), with an AUM of $75.535 billion, IBIT has grown by an impressive 117.5% year-to-date. This reflects Bitcoin’s emergence as a preferred investment over traditional gold-backed ETFs.
The total net assets under the 12 US spot Bitcoin ETFs have reached $114.97 billion, with a weekly net inflow of $2.17 billion. This continuous inflow highlights the increasing confidence in Bitcoin ETFs among institutional investors.
In a recent interview, former President Donald Trump announced plans to create a Bitcoin strategic reserve, comparing it to the US oil reserve. This initiative is part of a broader effort to position Bitcoin as a strategic asset.
Bitcoin’s Price Predicted to Reach $108K
Bitcoin’s price trend in the 4-hour chart shows a growing rally within a rising channel pattern. Despite a bearish reversal from the overhead trendline, Bitcoin’s price is still struggling for a breakout rally.
At present, Bitcoin’s price is forming a bearish 4-hour candle after nine consecutive bullish candles. Despite the short-term supply surge near the trendline, the positive trend in the MACD and signal reveals underlying strength.
Moreover, continued support from the ETFs could fuel the bull run. In such a case, a breakout rally could reach the R1 pivot resistance level at $108,301. On the other hand, the crucial support level at $101,275 remains strong.
