Bitcoin-to-Gold Ratio Index Falls to a New Low
The Bitcoin-to-gold ratio index has dropped to 18.5 ounces per BTC, marking its lowest level since November 2023. However, analysts believe that such rare “asymmetric situations” often precede a return of capital to the flagship cryptocurrency.
The Bitcoin-to-gold ratio shows how many ounces of gold are required to purchase one coin. On Wednesday, January 21, the indicator fell to approximately 18.5. This occurred as the precious metal reached a new all-time high of $4,888, while BTC is struggling to stay above the $90,000 level.
Capriole Investments founder Charles Edwards recalled that over 100 years of bull markets, gold prices have risen by more than 150% on average. If this trend continues, the price of the precious metal could climb to $12,000 within 3–10 years, increasing short-term pressure on the BTC/GOLD pair.
Crypto analyst known as Decode suggested that the pair may be showing signs of trend exhaustion. Using Elliott Wave Theory, he concluded that the bearish trend may be closer to completion than continuation, even as investor sentiment continues to deteriorate.
See also: "Bitcoin price today: stuck near $90,000 amid Greenland tensions"
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