Bitcoin to Gold Ratio Change Indicates Trend Change — QCP Capital
The Bitcoin/gold ratio BTC/XAU is declining, which foreshadows the imminent formation of the first cryptocurrency's bottom, experts from the trading company QCP Capital said.
Gold is currently trading near its all-time high of $3,600, having been supported by weak U.S. employment data last week. Bitcoin remains sideways above $112,000.
The BTC/XAU ratio, which shows how many ounces of gold are worth one bitcoin, is currently at 31.2 ounces per BTC. The ratio has fallen from 40 ounces in December 2024, indicating that gold is becoming more attractive than the first cryptocurrency, trading analysts said.
A similar pattern was observed in 2020 and 2022. If history repeats itself, Bitcoin could be in the process of forming a new bottom, setting the stage for another rally. Bitcoin’s history of cycles points to the potential for a breakout that could replicate previous bullish trends, but only in the long term, QCP Capital suggests.
Bitcoin's relationship with gold is becoming a kind of barometer of sentiment in high-risk asset markets. QCP Capital analysts are convinced that the next few weeks could be a turning point for the crypto market and will show what trend Bitcoin will form.
Earlier, experts from the on-chain platform CryptoQuant reported that the total volume of bitcoins accumulated by corporate investors reached a record 840,000 BTC in August. However, average purchase sizes and transaction volumes fell to a yearly minimum.
Source: cryptonews.net
