Bitcoin’s value relative to gold has hit a record low, a signal analysts compare to the 2015 market bottom that preceded a historic surge. On-chain data indicates long-term holders are accumulating Bitcoin, suggesting a potential long-term buying opportunity despite current short-term underperformance against traditional safe-haven assets.
The value of Bitcoin against gold has dropped to an all-time low, with analysts viewing this as a key long-term buying opportunity. This valuation indicator is now stronger than during the 2017 bull market, according to published data.
The last time Bitcoin traded at similar levels versus gold was in 2015. That period was followed by a multi-year surge that saw Bitcoin’s price approach $20,000.
Gold has risen approximately 50% over the past year as investors sought safe havens. This has caused gold to outperform Bitcoin by 18%, widening the valuation spread between the two assets.
Andre Dragosch, Head of Research at Bitwise Europe, stated that past large divergences were followed by a slow influx of capital back into Bitcoin. “If there are no major changes in macroeconomic conditions, the indication of the rotation trend may begin to appear in February and possibly continue through the end of March,” Dragosch suggested.
Analyst Benjamin Cowen warned that Bitcoin may continue underperforming traditional investments in the short term. He noted that hopes for a rapid rotation out of gold are misplaced while risk sentiment remains weak.
On-chain evidence indicates long-term Bitcoin holders are accumulating during the recent pullback. Metrics show entities that have not moved Bitcoin in over 155 days have renewed accumulation, behavior historically associated with establishing long-term market bottoms.
Historically, such accumulation by long-term holders has preceded price recoveries within weeks or months. This pattern occurs even when broader market sentiment remains weak, according to the data.
