Bitcoin’s three-month uptrend against gold appears to be over as ETF flows shift towards gold and other precious metals.
This is evident from the Bitcoin-to-gold ratio, which measures the dollar price per coin. $BTC against the dollar price per ounce of gold. Here’s a chart showing which “stores of value” investors actually prefer at any given time.
Since early March, Bitcoin has been the clear winner, increasing its ratio from about 12 points to 18 points.
But that’s no longer the case.
Growth has slowed recently, with a decisive decline in the past 24 hours, halting a three-month upward trend.
The ratio has broken through the uptrend line, $BTCMini bulls run against gold. In the world of technical analysis, this is a major bust and signals that momentum towards gold is shifting again.
why is this important
Signals are more than just lines on a chart, they tell you where the smart money is going next.
When the Iran war began in late February and oil prices soared to more than $100 a barrel, investors looked for somewhere to park their cash. And for a while, they were betting on Bitcoin as a haven. $BTC-Golden Ratio.
However, the same ratio has now negated that upward trend, indicating that investor rotation into gold has begun again.
Keep in mind that chart patterns like trendline breakdowns can, and often are, temporary. But for now, the message is clear. Gold can outperform. $BTC In the near future.
Market trends support that interpretation.
Precious metal ETFs in demand
Bitcoin-linked exchange-traded funds (ETFs) have fallen out of favor with investors, losing more than $2 billion in two weeks on the back of falling U.S. Treasury yields and the prospect of longer U.S. interest rates.
Gold and precious metal funds, on the other hand, are in demand. These funds attracted $2.34 billion in investor capital in the week ending May 20, extending their inflow streak to the second straight week, Reuters reported, citing LSEG Lipper data.
At the time of writing, Bitcoin is trading around $75,600, down 0.3% from midnight UTC, while gold is trading roughly flat at around $4,500.
