While gold has been making headlines recently with its price increases, Bitcoin (BTC), on the other hand, is attracting attention with its declines.
At this point, the Bitcoin/gold ratio (BTC/Gold) has fallen by approximately 23% this month, dropping to around 16.3.
Analyst James Van Straten, shedding light on historical data, revealed that the correlation between Bitcoin and gold over the past six months has followed a similar pattern to Bitcoin’s rise in 2019.
The analyst said historical data points to a potential rally in BTC following the rise in gold prices.
The analyst noted that Bitcoin has underperformed gold for six consecutive months, mirroring the pattern of 2019-2020.
“The current situation regarding the Bitcoin-gold ratio resembles the pattern seen in the six consecutive months of decline from August 2019 to January 2020.”
During that period, Bitcoin’s gains outpaced gold’s gains for about five months.
However, the analyst added that a drop in the Bitcoin-gold ratio does not necessarily mean that Bitcoin will strengthen.
“Bitcoin has underperformed gold for about 14 months. Even though the ratio has now bottomed out, this doesn’t automatically mean a strong uptrend for Bitcoin.”
*This is not investment advice.
