Bitcoin-Gold Ratio at 12-Week Low Amid Soaring U.S. Gold Deliveries
The bitcoin-gold ratio has fallen to a 12-week low of 34, reflecting a surge in gold’s safe-haven appeal amid escalating U.S.-China trade tensions. This shift comes as physical gold deliveries in the U.S. continue to rise, while bitcoin struggles to gain upward momentum.
Declining Bitcoin-Gold Ratio
Recent data from TradingView indicate that the ratio between bitcoin’s USD price and gold’s per-ounce price has dropped to 34—the lowest level since November 14. This figure marks a 15.4% decline from its peak above 40 recorded in mid-December. The downward trend suggests that while bitcoin faces challenges in attracting buyers, gold is increasingly seen as a secure investment.
Gold’s Rising Appeal
Gold prices have surged nearly 10% year-to-date, reaching a record high of $2,877 per ounce. This increase is largely driven by investor concerns over a potential U.S.-led trade war, particularly amid tensions between the United States and China. The threat of tariffs has pushed Comex futures prices significantly above the spot price, prompting traders to load U.S.-bound planes with the yellow metal. Investment banking giant JPMorgan is set to deliver $4 billion worth of gold bullion to New York this month, highlighting the robust demand for physical gold. Additionally, the Spring Festival has spurred increased gold buying in China.
Bitcoin’s Mixed Performance
In contrast, inflows into U.S.-listed spot bitcoin ETFs have largely been the result of non-directional arbitrage strategies rather than long-term bullish bets on bitcoin. According to 10x Research, while there has been $4 billion in inflows into these ETFs since the release of recent inflation data, the simultaneous unwinding of long positions in spot or futures markets has tempered any significant impact on bitcoin’s price. Markus Thielen, founder of 10x Research, noted that the arbitrage activity could offset the buying pressure from ETFs.
The current market dynamics highlight a clear divergence between traditional safe-haven assets and emerging digital currencies. With gold prices hitting record highs amid geopolitical and economic uncertainties, investors appear to be favoring the stability of physical assets over the volatility of bitcoin. As trade tensions persist and market conditions evolve, stakeholders across both asset classes will be closely monitoring these trends.