BTC/Gold Ratio

The BTC to Gold ratio (BTC/Gold ratio) is an indicator of the relative strength of bitcoin compared to gold, usually expressed in the number of ounces of gold that can be bought with one BTC. It is calculated as the price of BTC in USD divided by the price of gold per ounce in USD. This indicator helps to understand how BTC behaves like "digital gold" — a hedge asset against inflation and instability - or, on the contrary, is inferior to the traditional precious metal during periods of risk. An increase in the (BTC/Gold ↑) ratio signals that bitcoin is outperforming gold: investors prefer risky assets, seeing growth potential in BTC (for example, during bull markets of the crypto). A drop in the (BTC/Gold ↓) ratio indicates an outflow of capital from BTC to gold: in crises, gold acts as a more reliable haven, and BTC suffers from volatility and liquidations.