Overview

The bitcoin-gold ratio has reached its lowest point since mid-November, now at 34, driven by high demand for gold due to market uncertainties. Investment banking giant JPMorgan is scheduled to deliver $4 billion worth of gold to New York this month, further highlighting the urgency amidst the ongoing U.S.-China trade tensions.

Key Points

• The bitcoin-gold ratio has seen a decline of 15.4% since peaking above 40 in December.
• This drop coincides with a 10% rise in gold prices this year, partially fueled by safe-haven demand and increasing purchases from China.
• Traders are reportedly loading planes with gold heading to the U.S., amid growing trade tensions and discussions of tariffs.

Comments from Experts

Markus Thielen, the founder of 10x Research, remarks: “The ETF buying could be offset by simultaneous spot or futures selling (unwinding of long positions), dampening any significant price impact.” He notes that recent inflows into U.S. spot-listed ETFs indicate strategic trading rather than straightforward bullishness.

Conclusion

As geopolitical risks escalate, the demand for gold remains robust, leading to significant shifts in pricing dynamics between gold and bitcoin.