The BTC/XAU ratio has fallen to around 20 ounces of gold per bitcoin (CRYPTO:BTC), marking its weakest level since early 2024 and renewing questions over Bitcoin’s near-term direction.
Market participants view the move as significant because it coincides with gold trading close to historic highs amid persistent global uncertainty.
The ratio measures how many ounces of gold are required to purchase one bitcoin and is often used to assess relative strength between the two assets.
Analysts say the latest decline suggests Bitcoin is underperforming gold at a time when investors are favouring traditional stores of value.
Technical traders note that the breach of the 20-ounce level has previously aligned with important turning points in broader market cycles.
The last time the markets hit their bottom was also when the BTC/USD ratio against gold reached a low. One of the two is overvalued. The other is undervalued.
van de Poppe said.
He argued that current conditions point to gold being overextended while Bitcoin may be approaching a potential accumulation zone.