Bitcoin has been experiencing a significant decline against gold, reaching levels not seen in recent years. Experts describe the situation as an extreme overselling of Bitcoin relative to gold. The ratio, which reflects how much gold can be acquired with one Bitcoin, has notably decreased. Current statistics reveal that this ratio is well below its historical average and carries a Z-score of nearly minus three, suggesting substantial undervaluation.
Bitcoin is crazily oversold against Gold! pic.twitter.com/Zb6Vs081X4
— CryptoGoos (@crypto_goos) October 19, 2025
This downturn signals that Bitcoin is lagging behind the strength of gold. For traders, this could mean that Bitcoin might soon hit a pivotal moment where sharp reversals are likely after such oversold conditions.
Divergence by Gold
Gold has surged amidst global uncertainty, achieving new peaks as investors gravitate towards safer assets. Its demand has grown due to central bank acquisitions and inflation concerns. Meanwhile, Bitcoin struggles to keep pace with these developments leading to a downward shift in the BTC/Gold ratio. Despite stable prices for Bitcoin itself, the rise of gold highlights perceived weaknesses in digital currency during periods when gold was strong historically followed by significant rebounds for Bitcoin.
The technical charts indicate extreme ratios for Bitcoin now; its Relative Strength Index (RSI) dropped below thirty signaling an oversold market condition historically linked with major lows similar patterns previously led to substantial booms between 2015-2017 according analysts believe such trends could repeat if market sentiment shifts other chart observers note long-term ascending triangle formations within this ratio should Bitcoins break free from these structures they may reclaim their narrative akin electronic rushes toward digital wealth preservation.
Analysis
The BTC/Gold trading value currently stands around zero point two five compared exceedingly high values above zero point six witnessed during bullish phases like those seen throughout twenty twenty-one implying less than half amount required purchase single unit compared peak cycle period approximately nineteen million eight hundred thousand coins circulate globally while two hundred five thousand tons exist worldwide scarcity makes comparison relevant consistent performance trust factor give upper hand risk aversion times however contextually backdrop largely explains shift increasing interest rates political uncertainties bolster position haven utilized hedge volatility protection speculative currencies popularity diminishes under circumstances once monetary policies stabilize adoption grows sentiment changes institutional investors continue holding exchange-traded products renewed appetite risks would drive capital back into crypto markets professionals term accumulation zone believing asset underpriced relative comparative pricing future higher sentiments inflation expectations change will surpass again caution advised direct recoveries effects persist months monitor macroeconomic factors central banks regulatory news before declaring bottoms
Long-Term Implications
The outlook remains positive long-term each past occurrence resulted increased highs potential replace traditional stores limited supply growing institutional applications uncertainty dominance persists scarcity borderless qualities attract attention eroding fiat systems trust rivalry reached unprecedented heights decade