Bitcoin plunges relative to gold price... BTC/Gold ratio falls to recent low
Bitcoin continues to weaken in value relative to gold. However, experts believe this situation may offer long-term investors an opportunity to refocus on Bitcoin (BTC).
As of the 19th (local time), the Bitcoin/Gold ratio had fallen to approximately 18.5 ounces per BTC, the lowest level since November 2023. This was due to gold prices surging to a record high of $4,888 (approximately 7.17 million Korean won), while Bitcoin failed to hold the $90,000 mark and showed weakness.
This ratio represents the amount of gold required to purchase one Bitcoin. In other words, this can be interpreted as Bitcoin being relatively inexpensive. Charles Edwards, founder of investment firm Capriole Investments, analyzed, "Over the past 100 years, the average increase in gold bull markets has been as high as 150%," adding, "If this trend repeats itself, gold prices could break through $12,000 (approximately 17.59 million Korean won) within the next 3 to 10 years."
However, some analysts believe the current situation may indicate that gold's strength is coming to an end. Cryptocurrency analyst "Decode," citing Elliott Wave Theory, assesses that the BTC/Gold ratio has entered the "5th wave of a corrective C wave." This is explained as a structure typically indicating the end of a downtrend, suggesting that the recent weakness may be nearing its end.
Is Bitcoin about to regain attention?
André Dragoš, head of European research at investment firm Bitwise, diagnosed the surge in gold prices as related to structural changes in the global monetary system. He stated, "Global asset flows are now shifting from government bonds to physical assets," and added, "Gold absorbed funds first on the initial path, but I think Bitcoin is now in the next position."
Dragosh predicts: "Bitcoin is currently trading at a very low price relative to gold," and "this imbalance is very rare, and a reallocation of funds is likely to occur in the first quarter of 2026." He specifically explains that Bitcoin has not yet received attention due to being regarded as a risk asset against the backdrop of increasing demand for alternative assets, but this situation may actually be a potential factor for a future rebound.
Experts generally believe that the current decline in the BTC/gold ratio may present an "asymmetric investment opportunity" from a medium- to long-term perspective. Historically, there have been repeated instances of funds flowing back into Bitcoin after periods of significant decline in its value relative to gold. Whether a similar trend will repeat itself this time is attracting considerable attention.
💡 "It's not just gold that's going to rise... Bitcoin could be next."
The BTC/gold ratio recently fell to around 18.5 ounces per BTC, entering a relatively undervalued range. However, those who interpret market data interpret this decline as an opportunity to "buy Bitcoin again."
Elliott Wave analysis indicates that the market is entering the final stage of a downtrend, and the interpretation of Bitcoin as "next" in the context of macro capital flow trends is exactly the kind of insight needed.
Especially in times like these, it is crucial to cultivate the ability to avoid being misled and to invest based on data.
The methods for truly buying Bitcoin at low prices and analyzing its value relative to gold cannot be mastered overnight.
📌 In TokenPost Academy's Phase 2 [The Analyst] course, you can:
- Learn to use macro valuation standards such as the BTC/Golden Ratio.
- Master the strategy of buying "at a low price based on value" rather than simply looking at the price.
- Analyze fundamentals and on-chain indicators to avoid blindly following trends in trading.
📚 Course: A 7-stage masterclass covering everything from basics to macro analysis, DeFi, and futures and options.
🎁 Bonus: Join our monthly membership (20,000 KRW) and enjoy unlimited classes for only 1,000 KRW in the first month!
Apply to take a TokenPost Academy course
TP AI Precautions
This article uses a language model based on TokenPost.ai for article summarization. The main content may be omitted or may not be factual.
