Bitcoin-Gold Ratio Reaches Lowest Point in 12 Weeks Amid Rising Gold Demand
Concerns over a potential US trade war have led to a decline in the Bitcoin-gold ratio, reaching its lowest point in over 12 weeks. Key points include:
- The Bitcoin price relative to gold has dropped to 34, marking a 15.4% decrease from December's peak of over 40.
- Gold’s year-to-date price has increased approximately 10%, hitting an all-time high of $2,877 per ounce.
- Trade tensions between the US and China are driving investors towards gold for security amidst uncertainty.
- Demand for gold in China is rising due to the Spring Festival, further increasing its value.
- Higher tariffs on metal products have pushed futures prices above spot prices, prompting increased shipments of physical gold to the US.
- JPMorgan plans to deliver $4 billion worth of gold bullion to New York this February.
In contrast, Bitcoin has not seen significant price increases despite substantial inflows into US-listed spot Bitcoin ETFs, which collected over $4 billion within three weeks. Experts suggest that these inflows may primarily come from arbitrage trading rather than genuine demand for Bitcoin.