The Bitcoin-to-gold ratio currently stands at 19.29, reflecting a shift in market dynamics as Bitcoin has undergone a stagnant phase over the past year. In contrast, gold has achieved significant gains, reaching an all-time high of $4,533 on Friday, while silver surpassed $77, according to Trading Economics.
Analysts suggest that Bitcoin does not need a decline in gold or silver prices to maintain its upward momentum. Glassnode's lead analyst, James Check, expressed this view on social media, indicating that misunderstanding exists among Bitcoin enthusiasts regarding these asset relationships. Supporting this perspective, macroeconomist Lyn Alden stated that the notion of competition between the assets is misplaced.
Despite Bitcoin's current trading price of $87,650, down nearly 30% from its peak of $125,100 on October 5, sentiment around both assets remains complex. Analysts predict that while Bitcoin and gold have historically followed similar trends, the current correlation has weakened, with Bitcoin experiencing a decline of 7.2% this year.