Summary
- The bitcoin-to-gold price ratio (BTC/Gold) has fallen about 55% from its December 2024 peak, putting the ‘digital gold’ narrative under pressure.
- Over the past five years, gold’s gain of about 160% has exceeded bitcoin’s rise of roughly 150%, highlighting gold’s relative strength.
- In the market, gold is seen as reaffirming its role as a traditional safe haven amid geopolitical uncertainty and currency volatility, while bitcoin’s risk-asset nature is coming back into focus.
Bitcoin (BTC) has posted a sharp decline in its price ratio versus gold, raising questions about the ‘digital gold’ narrative, according to an analysis.
As of the 22nd (local time), cryptocurrency-focused media outlet CoinDesk reported that the Bitcoin-to-gold price ratio (BTC/Gold) stands at around 18.46, down about 55% from its peak in December 2024.
The outlet said that “spot gold has climbed to $4,900 per ounce, up about 12% year-to-date, while bitcoin has been relatively sluggish.” As a result, bitcoin’s status as ‘digital gold’—a store of value that could replace gold—is being challenged.
A comparison of long-term returns also shows gold’s relative strength. Over the past five years, gold has risen about 160%, outpacing bitcoin’s gain of roughly 150% over the same period.
The outlet also cited historical precedents. “The BTC-to-gold ratio has previously fallen by about 77% in 2022 and as much as 84% in 2018,” it said, adding that “it is difficult to conclude that the current roughly 55% decline necessarily marks a bottom.”
In the market, some interpret the move as gold reaffirming its role as a traditional safe haven amid geopolitical uncertainty and currency volatility, while bitcoin’s risk-asset characteristics are coming back into focus.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
