Following the US presidential elections, there has been a notable shift from gold to Bitcoin, with a significant increase in the BTC-Gold ratio.
Investors Turn from Gold to Bitcoin as BTC-Gold Ratio Rises Post-Election
The rate surged 12% on Wednesday after pro-crypto candidate Donald Trump won the US presidency, marking Bitcoin’s biggest single-day performance against gold since February 2022, according to TradingView data.
The increase underscores a reversal in trend in recent months, with some analysts predicting Bitcoin prices will continue to rise toward $80,000 by the end of the year.
The shift follows Bitcoin’s recent upward momentum as gold’s appeal has waned, likely triggering a capital migration from traditional safe-haven assets to the leading cryptocurrency.
“This rotation is a pivotal moment for Bitcoin, supported by macroeconomic factors such as currency depreciation and a pro-crypto policy shift under the Trump administration,” said Noelle Acheson, author of Crypto Is Macro Now. “The downtrend that has characterized gold’s dominance since March is finally reversing. Investors globally are taking note.”
The reversal marked the end of an eight-month downtrend that connected the highs in March and June, suggesting that Bitcoin could continue to outperform gold as more investors reallocate funds to BTC.
The Trump administration is expected to bring regulatory clarity for digital assets, potentially creating a strategic Bitcoin reserve, a move that could boost BTC's long-term value proposition.
Meanwhile, higher interest rates envisioned under Trump’s fiscal policy could put pressure on gold, which typically loses its appeal in high-interest environments, further driving demand for Bitcoin.
*This is not investment advice.