Bitcoin Outperforms Gold as U.S.-China Trade Tensions Ease
Bitcoin (BTC) has outperformed gold (XAU) over the past two weeks, with a bullish trend expected to continue. Key points include:
- The bitcoin-to-gold ratio indicates BTC's price is rising relative to gold.
- The ratio recently broke out of an inverse head-and-shoulders pattern, signaling a potential shift from bearish to bullish.
- The current ratio stands at 32.00, with targets suggesting it could rise to at least 35.00.
- Gold's price peaked above $3,500 on April 22 but has since dropped over 8% to $3,211, while BTC increased nearly 19% to $104,000.
- Easing U.S.-China trade tensions may favor BTC as investor confidence grows.
- Both nations agreed to lower tariffs on each other's goods, potentially enhancing risk-on sentiment in markets.
Analysts suggest that these developments could lead to increased investment flows into crypto and equities.