Veteran trader Peter Brandt has made a bold prediction about the future of Bitcoin (BTC) and its relationship with gold (XAU). He believes that within the next 12 to 18 months, Bitcoin could reach a value equivalent to 100 ounces of gold, which would represent a significant surge in its value against gold.

Currently, it takes 29 ounces of gold to buy one Bitcoin, indicating that a 230% increase in BTC’s value against gold could result from Brandt’s prediction. This forecast is based on the historical trend of Bitcoin gaining ground against gold since its inception. In 2017, Bitcoin surpassed gold in terms of price, and despite bearish markets in 2018 and 2019, it maintained a higher value than gold measured in dollars.

Bitcoin has already shown significant growth this year, gaining 42% against gold despite some corrections. The BTC/GLD ratio is currently above key moving averages, indicating bullish momentum. Brandt believes that Bitcoin still has room for growth and that the ratio should stabilize for another 12 to 18 months before a strong upward movement.

The launch of the first spot Bitcoin exchange-traded funds (ETFs) in the U.S. has significantly influenced both assets. These ETFs have accumulated over $50 billion in assets under management (AUM) in record time, a feat that took gold ETFs five years to accomplish. The rapid growth of Bitcoin ETFs has bolstered Bitcoin’s status as a leading market indicator.

Despite the success of Bitcoin ETFs, Bloomberg Intelligence’s senior commodity strategist Mike McGlone noted that Bitcoin’s recent surge did not exceed its 2021 peaks against gold and the S&P 500, highlighting the volatile nature of cryptocurrencies compared to traditional assets. Meanwhile, Kaiko data shows that Bitcoin’s 60-day correlation with gold has been increasing, nearing yearly highs but still below 2022 peaks.

This suggests that while both assets offer protection against economic uncertainties, investors view them differently, with Bitcoin potentially offering more upside. Over the past year, Bitcoin exhibited high volatility, ranging from $25,036 to $73,390, achieving a 118% increase. Its relative strength index (RSI) indicated both oversold and overbought conditions, currently standing at a neutral 52. Gold, on the other hand, showed steady growth, with a 17.7% increase in price and an RSI of 46, reflecting market balance.

Both assets offer distinctive investment opportunities: Bitcoin for potential high returns and volatility and Gold for stability and risk mitigation. For now, the next target on Bitcoin’s list is silver, which has a total market cap of $1.8 trillion, while Bitcoin sits at $1.33 trillion in value. Bitcoin still has a long way to go to catch up to gold, which is estimated to have a total value of $15.5 trillion.

As Bitcoin continues to gain ground and attract investor interest, its performance against gold will be a key metric to watch in the coming months.