Bitcoin's (BTC) underperformance relative to gold is now at its worst level in nearly two years.
The ratio between the price of Bitcoin and the price of gold has dropped to 20.18, its lowest level since Jan. 1, 2024, according to data from TradingView.
The divide shows that investors still favor gold as a safe-haven asset in times of uncertainty. Gold has also been rising this year as the U.S. Federal Reserve lowers interest rates.
Bitcoin, on the other hand, has been caught in a downdraft since mid-October and fallen 30% in the last two months. For the year, BTC is down 7% and currently trading at $87,355 U.S.
Gold’s price has risen 63% this year, reaching over $4,300 U.S. per ounce.
Other catalysts for gold have included ongoing geopolitical tensions, central bank purchases, and a weakening U.S. dollar.
While Bitcoin is often referred to as “digital gold,” it hasn’t behaved as a store of value or safe haven asset this year.
Rather, cryptocurrencies have tended to trade similar to technology stocks associated with the artificial intelligence (A.I.) trade.
Many on Wall Street expect gold’s price to continue moving higher in 2026 as geopolitical and macroeconomic uncertainty continue.
The outlook for Bitcoin and other cryptocurrencies is more unsure, with price forecasts all over the place and ranging from $50,000 U.S. to $200,000 U.S.
