The price of BTCUSD keeps rising up, but so does the supply of broad money (M2). So far this year both have grown 227% and 25% respectively. There is more money now than there was at the beginning of the year, 1/4 more. Based on this metric alone, one dollar is worth 3/4 of what it was worth at the beginning of 2020. Today:
Historically, the price of gold has kept up with the growth of the money supply. (See Lyn Alden's core gold model) Gold is a well-established store of value. Measuring the price of Bitcoin relative to the value of gold is a way to keep track of its purchasing power. That is what the first graph plots, the cost of Bitcoin denominated in grams of gold.
You can add the AU usd/grams levels to a chart with this indicator gold price levels denominated in usd/grams
- One BTC is worth 2.27 BTC from a year ago
- One USD is worth 0.75 USD from a year ago
Historically, the price of gold has kept up with the growth of the money supply. (See Lyn Alden's core gold model) Gold is a well-established store of value. Measuring the price of Bitcoin relative to the value of gold is a way to keep track of its purchasing power. That is what the first graph plots, the cost of Bitcoin denominated in grams of gold.
- The last ATH was 484.76 grams of gold.
- On Nov 16, the resistance of 303.07 grams was crossed, putting the price on a trajectory to reach the previous ATH.
- Bitcoin still needs to rise another 25% to make a new ATH in gold terms.
You can add the AU usd/grams levels to a chart with this indicator gold price levels denominated in usd/grams
Comment:
updated indicator:
Trade closed manually