Gold’s Grand Goosebumps: BTC Stomps Gold Like a Ratio Rocket!

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Markets

What to know:

  • Gold, that posh cousin who liked to flaunt his gleam, has stooped about 27% from its grand January peak, and since late February has taken a tiny 12% dip – a slowdown that would make even the most stoic of wigs quiver with sorrow.
  • Bitcoin, on the other hand, is holding its fort above $70,000, causing the BTC‑to‑gold ratio to pop up roughly 30% from the lows of more recent days, signalling that the digital metal has thrown its hat off and is on the rise.

Gold is currently on its longest losing streak in over a century, its most woeful degrade since February 1920, lasting a jaunty ten consecutive days, according to dear Katie Greifeld, a Bloomberg analyst who presumably enjoys a good penny dreadful.

The yellow curveball has fallen as much as 27% from its January all‑time high, have‑you‑seen‑this‑is‑so‑main‑character‑obsessed, plummeting to a low of $4,090 – where it found support at its 200‑day moving average, a widely watched technical level that often signals longer‑term trend strength, or at least provides a decent coffee break for those holding long positions.

However, it has bounced by roughly 2% over the past 24 hours, possibly indicating the end of that dreadful streak. Since the Middle East conflict erupted at the end of February, gold has remained down around 12% – a figure that would probably make a Victorian lady’s corset tighten itself in distress.

Meanwhile, Bitcoin, often referred to as digital gold, is hanging above $70,000, keeping the Bitcoin‑to‑Gold ratio just below 16 ounces – a smidge above the “fine” level of 12 ounces that marked the conflict’s pre‑war lull. In other words, bitcoin’s ratio has risen roughly 30% from those lows, outshining the old‑fashioned metal despite the latter’s heroic effort.

Charlie Morris, chief investment officer at ByteTree, noted: “I remember the excitement when 1 BTC first surpassed one ounce of gold in March 2017. Since then, it has consistently built higher lows, reaching 2.7 oz in 2019, 3.4 oz during the 2020 pandemic crash, 9.1 oz after the FTX collapse, and 12.4 oz in February this year. Now, one BTC is worth 16 ounces of gold. With gold appearing exhausted we could reasonably expect a new all‑time high above 40 ounces in the coming months or years.”

Historically, bitcoin has tended to lag gold in market cycles. Gold typically leads with an initial rally, then consolidates, allowing bitcoin to catch up and outperform – a cycle as predictable as a church choir’s high notes.

While Bloomberg ETF analyst Eric Balchunas argues that bitcoin and gold are not inversely correlated, but rather largely uncorrelated, suggesting that the two go about their business like mismatched doppelgängers at a tea party.

He notes that gold exchange‑traded funds (ETFs) such as SPDR Gold Trust (GLD) and iShares Gold Trust (IAU) have seen billions of dollars in outflows over the past week. In contrast, bitcoin ETFs have recorded around $2.5 billion in inflows this month, with only about $140 million in net outflows year‑to‑date, despite bitcoin being down roughly 20% over that period – a fact that will make investors chuckle in their shoes.

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2026-03-25 13:46