Bitcoin (BTC) is poised to conclude January with its sixth consecutive month of underperformance against gold, as investors increasingly gravitate towards the traditional safe-haven asset amidst ongoing economic and geopolitical instability. The recent data shows that the bitcoin-to-gold ratio has plummeted by 23% this month, currently resting at 16.3.
This trend mirrors a similar pattern observed during the 2019-2020 cycle, which commenced in August and concluded in January of the following year, where Bitcoin outshone gold for five consecutive months thereafter. Notably, signs of a potential shift may be emerging; the ratio experienced a 4% rebound on Friday after dipping to a low of 15.5 the previous day, a drop that coincided with a significant selloff in global markets.
As of now, Bitcoin hovers around $82,000, reflecting a decline of just over 2% since midnight UTC. In contrast, gold has faced a more severe drop, falling by more than 8%, while silver has declined approximately 16%. Since reaching its peak in late 2024, the bitcoin-to-gold ratio has witnessed a staggering decline of roughly 60%, indicating that Bitcoin has been in a technical bear market against gold for the past 14 months.
Despite this recent uptick in the ratio, it does not necessarily guarantee a robust rebound for Bitcoin. The movement could simply suggest that gold is weakening at a faster rate than Bitcoin, rather than a definitive turnaround for the largest cryptocurrency. Investors remain cautious as the market navigates through turbulent waters, weighing risk and safety in their portfolios.
