Bitcoin-to-Gold Ratio Hits Record High as Digital Asset Outshines Metal

Cryptocurrency Outperforms Traditional Safe Haven, Reaching Unprecedented 15.7 BTC per Gold Ounce

  • Bitcoin-to-Gold ratio reached a record high of 37.3, surpassing the previous peak of 36.7 from November 2021.
  • Global Bitcoin ETF assets have accumulated $119 billion, compared to gold-backed ETFs at $290 billion.
  • Bitcoin’s fixed supply cap of 21 million tokens contrasts with gold’s ongoing mining production.
  • Bitcoin shows 50% annual volatility versus gold’s 20%, offering higher potential returns with increased risk.
  • Institutional investors continue to favor Bitcoin despite its stronger correlation with traditional markets.

Bitcoin Surpasses Gold in Historic Ratio Milestone as ETF Inflows Accelerate

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Bitcoin’s purchasing power against gold reached unprecedented levels on Monday, with one Bitcoin now equivalent to 37.3 ounces of gold, highlighting institutional investors’ growing preference for digital assets in their portfolios.

The Bitcoin-to-gold ratio, calculated by dividing Bitcoin’s price by gold’s per-ounce spot price, exceeded its previous record of 36.7 set during the 2021 cryptocurrency market peak, according to market data.

Institutional Adoption Drives Growth

"Hitting a new high signals the continued adoption and maturation of Bitcoin as an asset class," Maple Finance CEO Sidney Powell told Decrypt, pointing to sustained ETF inflows as a primary driver.

Market data from Coinglass shows Bitcoin ETF assets have reached $119 billion, while gold-backed ETFs maintain $290 billion in assets under management, according to the World Gold Council.

Supply Dynamics and Market Characteristics

Bitcoin’s programmed scarcity includes:

  • Maximum supply cap of 21 million tokens
  • Periodic halving events reducing new supply by 50%
  • Final Bitcoin minting projected for 2140

Singapore-based QCP Capital noted in a recent market analysis that the ratio reinforces Bitcoin’s position as "digital gold" and indicates its growing acceptance as a store of value.

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However, gold maintains its position as a traditional safe haven during market uncertainty, benefiting from its 3,500-year trading history and lower volatility profile. While gold exhibits approximately 20% annual volatility, Bitcoin’s price movements typically show 50% volatility, presenting both higher risk and return potential for investors.

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