The Bitcoin-to-gold ratio has recently rebounded from its lows, reflecting a pattern observed in the two thousand nineteen to two thousand twenty cycle.
Bitcoin is poised to underperform gold for the sixth consecutive month as investors overlook the largest cryptocurrency's "digital gold" label, opting instead for the safety of a metal that has historically served as a refuge during economic and geopolitical turmoil.
The Bitcoin-to-gold ratio, which indicates the amount of gold equivalent to one Bitcoin, has dropped twenty-three percent this month and currently stands at sixteen point three. The six-month trend resembles the sequence that began in August of two thousand nineteen and ended in January of the following year, when Bitcoin subsequently outperformed gold for the next five months.
Signs of a potential retrenchment may be emerging. The ratio rebounded four percent on Friday after hitting a low of fifteen point five on Thursday, coinciding with a sharp selloff across global markets where risk assets declined aggressively.
While Bitcoin hovers around eighty-two thousand dollars, down just over two percent since midnight UTC, gold has fallen more than eight percent and silver approximately sixteen percent.
From its peak in late twenty twenty-four, the Bitcoin-to-gold ratio has declined by roughly sixty percent, placing Bitcoin in a technical bear market against gold for about fourteen months. Even if this ratio has now bottomed, it does not necessarily imply a strong upside for Bitcoin, as it may simply reflect gold's continued weakening at a faster rate.