Cryptocurrency expert Joao Wedson has suggested that the current weakness in the Bitcoin (BTC) to gold (XAU) ratio might indicate a long-term positive trend for financial markets.
Wedson’s report highlights a recent shift where major institutions and banks are favoring gold over Bitcoin.
In his December analysis, Wedson pointed out that this transition offers “an ideal opportunity for selling and rotating” assets among institutional investors. He believes gold is nearing its “buying peak” and will soon enter a distribution phase. At this juncture, he anticipates conservative capital may revert to riskier investments like Bitcoin.
“The BTC/XAU charts hold greater significance than BTC/USD,” Wedson emphasized, noting many investors fail to recognize this distinction and thus face repeated losses. He underscored the enduring value of gold by stating, “Gold has served as a benchmark for millennia and will continue in this role.”
Wedson forecasts that after reaching its peak, gold will likely remain stable for at least two years. During this period, he envisions Bitcoin experiencing an explosive growth similar to what occurred in 2017. However, he predicts such developments won’t happen until after 2028 rather than in 2025 or 2026.
*This content does not constitute investment advice.