The so-called "Bitcoin-gold ratio," which converts Bitcoin (BTC) into gold, has fallen to 20 ounces per BTC. This represents a 50% drop from the 40 ounces it stood at in December 2024, just one year ago. This decline is not due to a drastic decline in Bitcoin demand, but rather to gold's overwhelming performance in the global store of value race since 2025.
Gold and silver performed remarkably well in the asset market in 2025. The price of gold surpassed $4,000 per ounce (approximately 5.92 million won) in the fourth quarter, recording a remarkable 63% increase compared to the beginning of the year. This upward trend is particularly noteworthy because it occurred amidst a tightening monetary policy, with the U.S. Federal Reserve (Fed) only cutting interest rates in September. While this would have been a disadvantage for interest-free assets like gold in the past, this year's performance was driven by structural changes in demand.
On the demand side, a favorable trend has also developed for gold. Central banks worldwide net purchased 254 tonnes of gold through October, and global gold ETF holdings increased by 397 tonnes in the first half of the year (January to June). This signals a resurgence of traditional demand for safe-haven assets.
Meanwhile, Bitcoin failed to avoid weakening demand in the second half of the year. Spot ETF assets under management (AUM) fell from $152 billion (approximately KRW 22.4573 trillion) to $112 billion (approximately KRW 16.5726 trillion), and supply pressure increased as long-term holders sold more than 500,000 BTC.
The decline in the Bitcoin-gold ratio goes beyond a simple price comparison; it forces investors to rethink how they perceive what they perceive as a "store of value." As gold was traditionally dominated by central bank demand and ETF flows, Bitcoin will likely need a more distinct narrative and demand base in 2026 to regain its presence.
🔎 Market Interpretation
In 2025, gold outperformed cryptocurrencies, fueled by strong demand despite a high interest rate environment. This reflects a renewed focus on gold's role as a store of value among major assets.
💡 Strategy Points
When gold is strong, preference for traditional assets increases, which could limit the upside potential of riskier assets like Bitcoin. It's important to monitor gold ETFs and central bank purchase data to gauge the timing of a recovery in Bitcoin demand.
📘 Glossary
- Bitcoin-Gold Ratio: The number of ounces of gold needed to purchase 1 BTC
- AUM (Assets Under Management): The total amount of assets held by financial products such as ETFs.
- Gold ETF: An exchange-traded fund traded based on the price of physical gold.
TP AI Precautions
This article was summarized using a TokenPost.ai-based language model. Key points in the text may be omitted or inaccurate.
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