Key Takeaways

Will gold’s cooldown boost BTC’s recovery?

This might be possible, especially if ETF inflows rotate from gold to BTC. 

What do experts think about gold outperforming BTC?

According to Bitwise’s CIO, BTC could have its ‘gold 2025’ moment if long-term holders’ selling pressure is fully absorbed by ETFs. 

After fronting a +30% run since August, gold faced a cool-off at $4.4k and slipped by 6% earlier this week.

The move helped the BTC/gold ratio extend its recovery by 8%. Notably, the ratio tracks the price performance of Bitcoin [BTC] relative to gold. 

In other words, the 8% bounce in the ratio hinted that BTC strengthened slightly against gold. However, will the shift extend itself even more and rally BTC higher as a ‘digital gold?’ 

Bitwise’s outlook on Bitcoin

According to Bitwise CIO Matt Hougan, gold’s price rally only exploded this year. However, central banks have been accumulating it aggressively since 2022.

He claimed that gold investors may have offloaded over the past two years, but seller exhaustion hit this year – Allowing the price to moon on the charts.