Peter Smith
Bitcoin's ratio against gold (BTC/XAU) has fallen to its lowest point since the FTX collapse in early 2023. This rare alignment hints that Bitcoin might be entering a phase of significant undervaluation compared to traditional safe-haven assets.
Chart Analysis: BTC/Gold Hits Multi-Year Support
Analyst Ash Crypto points out that the BTC/Gold pair hasn't been this cheap in nearly two years—a situation that previously triggered a strong Bitcoin recovery.
The weekly chart reveals Bitcoin's performance against gold, and the similarities to early 2023 are remarkable. The BTC/Gold ratio now sits around 503M, matching the post-FTX capitulation zone. The RSI indicator at 34.58 is approaching oversold levels—the same territory where Bitcoin began its 2023 comeback. Back then, this ratio reversed sharply upward, signaling money flowing from gold back into crypto. The current setup suggests we might be entering another accumulation phase where smart investors start buying undervalued Bitcoin relative to gold.
Why Bitcoin's Trailing Gold
Bitcoin's recent weakness isn't happening in isolation—it mirrors broader economic trends. Higher interest rates and persistent inflation have boosted demand for physical assets like gold. Global markets have turned defensive, pushing investors away from Bitcoin toward safer positions. Meanwhile, geopolitical tensions and safe-haven buying have helped gold outshine riskier assets. That said, Bitcoin's historical patterns show it typically races ahead of gold once economic pressures let up.
Bitcoin's track record shows that steep drops in the BTC/Gold ratio often signal the end of major corrections. Similar setups in 2015, 2019, and 2023 all featured comparable RSI readings and led to sharp bounces afterward. With RSI now below 35, we're seeing conditions that align with those past accumulation windows. When Bitcoin catches fire again, its value against gold tends to explode—often doubling or tripling in subsequent quarters. This suggests the market may be nearing another cyclical low in Bitcoin's relative worth.
Peter Smith
