Gold has recently reached an inflation-adjusted record high of $3,683.14 per ounce, surpassing a 45-year-old benchmark previously set in January 1980, when the price was $850 per ounce. Taking inflation into account, that amount would roughly equal $3,539.58 today, marking a significant milestone for the precious metal. Throughout September, gold prices have increased by 8%, drawing considerable attention from both investors and analysts.
Meanwhile, Bitcoin has seen a notable rise, climbing 6% to approximately $114,286. Despite this positive movement, analysts are closely monitoring the gold-to-Bitcoin ratio for potential indications of market shifts. At present, the ratio stands at 0.032, significantly lower than the historically relevant level of 0.041, which has often preceded Bitcoin stability during gold rallies. Analysts from QCP Capital, a digital asset trading firm based in Singapore, indicated that if Bitcoin can maintain its momentum alongside gold’s ascent, it might set the stage for a substantial breakout in the cryptocurrency market.
Prediction markets have tilted in favor of gold with 63% of bettors now expecting it to outperform Bitcoin by year-end. This shift in sentiment underscores a growing confidence in the precious metal, especially following its recent peak. Earlier estimates had seen a more competitive outlook, with only 54% predicting gold would surpass Bitcoin.
As for Bitcoin, it has managed to hover around $114,000 through much of New York trading on Thursday. A recent report from the Bureau of Labor Statistics indicating a higher-than-anticipated consumer price index has contributed to Bitcoin’s 0.7% increase compared to the previous day. The cryptocurrency had previously peaked at approximately $114,696 earlier in the trading session.
QCP analysts are not only focusing on the gold-to-Bitcoin dynamics but are also observing the gold-to-S&P 500 ratio as a measure of risk sentiment in traditional markets, alongside the BTC-to-ETH ratio for insights on digital asset rotation. Together, these cross-asset ratios are seen as vital for understanding the broader risk landscape affecting both traditional and digital asset markets as investors navigate through current economic conditions.
