Recent cryptocurrency market trends have attracted attention—significant fluctuations in the price ratio between Bitcoin and precious metals.



Specifically, at the end of December, the Bitcoin-to-Silver ratio dropped to 1104, the lowest level since September 2023. What does this number reflect? Since May, silver has entered an upward cycle, while Bitcoin performed relatively flat during the same period, causing this ratio to decline by 67% in just seven months. A more intuitive way to understand this is—using the same amount of money, you can now exchange for more Bitcoin, or in other words, Bitcoin has experienced a significant depreciation relative to Silver.

The situation with gold is similar. The Bitcoin-to-Gold ratio also fell to 19, setting a new low since November 2023, halving from the beginning of the year, with a decline of 50%.

What is the deeper logic behind this market trend? While traditional precious metals like gold and silver have surged strongly, Bitcoin has fallen into a sideways consolidation. The flow of market funds has become very clear—investors are increasing their allocation to traditional safe-haven assets, and cryptocurrencies are temporarily not the first choice.

Interestingly, this low level has not yet touched the lowest point of the 2022 bear market. Is this a good opportunity to buy the dip now? There are different opinions within the community. One camp believes that the surge in precious metals is just short-term market sentiment, and the long-term fundamentals of Bitcoin remain unchanged. Another camp adopts a cautious stance, worried that continued outflows of funds could lead to further declines.

Regardless, this adjustment in market price relationships has indeed stirred the nerves of many investors. Will the next trend be a rebound in Bitcoin after completing its bottoming process, or will precious metals continue to suppress cryptocurrencies? The market is still waiting for an answer.
BTC-2,92%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 7
  • Repost
  • Share
Comment
0/400
RektButAlivevip
· 8h ago
The gold and silver bottoming trend has really arrived, and Bitcoin has been drained as expected.
View OriginalReply0
0xTherapistvip
· 18h ago
Precious metals are going crazy, Bitcoin is being rubbed on the ground... Now I'm a bit confused about whether I should buy the dip.
View OriginalReply0
MidnightGenesisvip
· 18h ago
On-chain data shows funds are systematically flowing into traditional safe-haven assets, and this signal is worth noting. The ratio has been cut in half since the beginning of the year, and based on past experience, such a rapid decline often indicates deeper contract movements behind the scenes. The interesting part is that it hasn't yet reached the lows of the 2022 bear market, suggesting that market sentiment has not fully collapsed. A 67% decline looks frightening, but my observation is that this may just be a process of reallocation of funds, and does not necessarily indicate a bottom. The logic behind the surge in precious metals needs to be explored further; on the surface, it appears to be safe-haven sentiment, but it could actually be a more complex macro game. As expected, whenever Bitcoin consolidates sideways, precious metals start to perform, and two years ago, it was the same script. It’s worth noting that this timing is a bit subtle; monitoring contract movements late at night can reveal some clues.
View OriginalReply0
RugpullTherapistvip
· 18h ago
Oh no, the funds have gone to buy gold again, and the crypto world is going to be disliked again. It feels like this round of precious metal surge is hinting at something... Bitcoin has been cut in half, and now even silver is starting to bully it. People who buy the dip are really brave. I'll just watch and wait.
View OriginalReply0
ImaginaryWhalevip
· 18h ago
The precious metals vampires are here, and BTC is still snoring. Funds are fleeing so quickly, this is what reality looks like. Waiting for an answer again? I think those who should have already bottomed out have done so. No wonder silver is rising so fiercely, Bitcoin is being suppressed. Talking about long-term logic, in the short term it might go to zero first. A 50% drop is really刺激, let's see who can hold out until the rebound day. Gold and silver are both striking, crypto assets are being冷了.
View OriginalReply0
LiquiditySurfervip
· 19h ago
Funds are being pulled out to buy gold, Bitcoin is now just the neglected old boy... --- Why such a sharp 67% drop in silver? Feels like there's still quite a bit of arbitrage space. --- Traditional safe-haven assets are starting to bleed again; this routine happens every year. --- Sideways consolidation basically means waiting for liquidity reallocation. Just wait patiently. --- If the brothers trying to bottom fish aren't mentally prepared, they might have to endure a second wave of decline to feel happy. --- Interestingly, the recent surge in precious metals is essentially driven by inflation expectations running wild. --- Is the bottom building up or are we still breaking lows? I bet the liquidity situation won't turn around that quickly. --- The suppression of Bitcoin is actually quite healthy, indicating the market is re-pricing liquidity premiums. --- A 50% cut sounds terrifying, but for market makers, it's an opportunity to deepen liquidity. --- Honestly, does the traditional financial risk-hedging logic still work so well for on-chain assets?
View OriginalReply0
GweiObservervip
· 19h ago
The recent surge in precious metals is a bit too fierce; it feels like funds are fleeing the crypto space.
View OriginalReply0
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • بالعربية
  • Português (Brasil)
  • 简体中文
  • English
  • Español
  • Français (Afrique)
  • Bahasa Indonesia
  • 日本語
  • Português (Portugal)
  • Русский
  • 繁體中文
  • Українська
  • Tiếng Việt