Bitcoin is on track to end January underperforming gold for a sixth consecutive month as investors ignore the largest cryptocurrency’s “digital gold” moniker and seek the safety of a metal that has historically been seen as a safe haven during times of economic and geopolitical turmoil.
The Bitcoin-to-Gold ratio, the amount of gold equivalent to 1 BTC, has fallen 23% this month and currently stands at 16.3. The six-month pattern is very similar to what happened in 2019, when the sequence began in August and ended in January of the following year. At the time, bitcoin outperformed gold for the following five months.
The first signs of a withdrawal may be emerging. The ratio rose 4% on Friday after falling as low as 15.5 on Thursday. The low decline coincided with a strong sell-off across global markets, with risk assets falling aggressively.
Bitcoin is currently hovering around $82,000, down just over 2% since midnight UTC. In comparison, gold has fallen by more than 8% and silver by approx. 16%.
From its peak in late 2024, the bitcoin-to-gold ratio has fallen by about 60%, placing bitcoin in a technical bear market against gold for about 14 months. Although the ratio is now tied, it does not automatically mean a strong upside for bitcoin. It may simply reflect that gold continues to weaken at a faster rate than bitcoin.
