Is Bitcoin “Store of Value” Prospect Against Gold At Risk?

The unending Bitcoin (BTC) versus Gold duel as a store of value just got a fresh analysis from legendary trader Peter Brandt. This analysis comes at a time when the role of these assets as a hedge against inflation is becoming more important. Known as a vocal financial market analyst, Peter Brandt also shared his perception of which of the two assets is the best fit.

The Dwindling Bitcoin Versus Gold Ratio

In Peter Brandt’s analysis, he pointed out that the BTC/Gold chart is a textbook example of classical charting principles. Rather than maintain a hardcore stance on “dogmatism,” Brandt believes flexible investors might benefit much later.

To explain this, he pointed at the BTC/GLD ratio which is current at 26x in favor of Bitcoin. However, he believes the coin could drop significantly vs Gold to as low as 16. If this happens, he believes it may not alter the long-term bull case for Bitcoin vs. Gold. Responding to these dwindling narratives is important for investors. The key way they can achieve this is by maintaining a balanced portfolio.

The analysis from Brandt comes at a time when BTC has the biggest advantage. With growing Interest Rate cuts from central banks including the Bank of England, the coin might welcome more capital inflow in the coming weeks. This might help boost its valuation moving forward.

The “Store-of-Value” battle is historic
The BTC/Gold chart is a textbook example of classical charting principles
Flexibility of interpretation is more important than is dogmatism
Currently at 26.x, $BTC could (could, not will) drop significantly vs Gold to as low as 16 without… pic.twitter.com/gduy0fTRtE

— Peter Brandt (@PeterLBrandt) August 1, 2024

To conclude his analysis, Brandt believes it is best to gain exposure to both assets. In his words, to be on either side is equal to “FOOL’s Gold.”

Growing BTC Use Case

Besides the store of value embrace that firms like MicroStrategy are leaning on, Bitcoin has grown to become an asset defining political popularity.

Donald Trump recently launched Bitcoin-based Non-Fungible Token (NFT) sneakers in his campaign fundraising efforts. Besides this, Ordinals are also helping to redefine the programmability of the coin in general. With Presidential Candidates like Trump and Robert F. Kennedy Jr promising governmental reserves, the entire narrative around the coin might change dramatically soon.

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