The BTC-to-Gold Ratio Breaks Decade-Long Support Level

Bitcoin is the best-known crypto asset in the world, having the largest market cap level in the sector and being the go-to choice for all investors who want to make sure their portfolios are safe and secure.

The last quarter of 2024 brought huge gains to the ecosystem, with the price reaching a six-figure level for the first time in its history. Apart from serving as the blueprint for all the other crypto coins on the market, BTC also influences the price points of all other cyber assets and tokens, with the majority reacting to its price shifts with their own movements.

One of the main things that sets Bitcoin apart from most altcoins is that it has a fixed supply. This means that scarcity drives its value, making it more attractive to potential buyers. 

For this reason, Bitcoin has often been compared to gold, which is also rare and known for its ability to act as a store of value. If you’ve been researching how to buy Bitcoin and make the most of what the marketplace has to offer, then you’ve most likely learned that holders refer to Bitcoin as “digital gold” as well, with some taking the necessary steps to integrate data about how the two markets compared to each other as part of their strategy. If you haven’t done this in the past, it might be time to reconsider right now, as the metrics indicate the area is of particular interest. 

The history of gold and BTC

At first glance, it might seem like these two assets have absolutely nothing in common. Gold is one of the oldest commodities in the world, with some historians believing that the earliest recorded metal used by humans is actually gold. Small amounts have been found in Spanish caves used during the late Paleolithic period, around 40,000 BC.

The oldest gold artifacts in the world were found in Bulgaria, and date back to around 4,600 BC. One of the earliest maps ever found, the Turin Papyrus Map, reportedly discovered at Deir el-Medina in Thebes, shows the plan of a gold mine located in Nubia. Gold is also mentioned in the Amarna letters dating from the 14th century BC. The Romans introduced new methods of extracting gold and developed hydraulic mining, which was used in Hispania and Dacia. 

Mansa Musa, ruler of the Mali Empire, reportedly gave away so much gold when he passed through Cairo in 1324 that he depressed prices in Egypt for more than a decade. The European incursions to the Americans were partially fueled by the reports of the gold present in areas such as Peru, Colombia, and Ecuador.

The Aztecs considered it the product of the gods, while the native peoples from North America regarded it as essentially useless and preferred flint, slate, and obsidian to it. The concept of El Dorado, a mythical city made entirely of gold that was supposed to have been located somewhere in South America, clearly indicates the impact this precious metal had on human society. 

Due to its importance, it has also been used as a representation of greed and corruption in fables. Now, compare this history with that of Bitcoin, one of the newest asset classes in the world. BTC is the first cryptocurrency to appear on the market, spearheading the introduction of digital tokens in the financial sector and the trading world. It is based on the blockchain, a decentralized system that allows users to buy and sell without the need for an intermediary. It was first released in 2009, and since 2021, it has become legal tender for El Salvador. 

It is fundamentally different from all the holdings that preceded it because it isn’t controlled by any centralized business, institution, or organization, but participants must still adhere to the rules that govern the network and keep it functional. 

The ratio 

With the crypto marketplace recording sizable growth during the last two months of 2024, most investors believe that the tendency will continue in 2025. However, BTC has instead begun to retest some of the previous support levels, and corrections have occurred as well.

Many believe that the king of crypto has the strength and potential to reach new heights during the next few months, but it certainly needs to consolidate its position in the meantime. As of March 2025, BTC is in the process of breaking a multiyear uptrend against gold. This is nothing new, with historical data indicating that something similar occurred during the fractal that occurred between March 2021 and March 2022. 

The reason for this is that Bitcoin recently hit new record levels while BTC’s uptrend has started to cool down. The BTC/XAU ration breakdown occurred as spot gold rates went above $3,000 per ounce as of March 14th. Judging by the year-to-date figures, the price climbed by roughly 13%. In contrast, digital gold has lost 11% of its value since January.

These performance levels are a pretty comprehensive indicator of the net flows of the US-based spot ETFs dealing with both gold and BTC. The gold-backed exchange-traded funds attracted $23.18 billion since the beginning of the year, while Bitcoin amassed less than $6.50 billion during the same timeframe. 

Growing macroeconomic uncertainties are at the root of this change, with uncertainty and risk aversion being the dominant market sentiments at the moment. Shifting and often increasingly aggressive trade policies with the potential to impact many nations from all over the globe have heightened worries about a potential slowdown, making investors move towards safe-haven holdings which are associated with far fewer risks. Gold is unquestionably one of these assets, if not the fundamental one belonging to the category. 

Which one to choose? 

Both gold and Bitcoin can have a spot in a multi-asset portfolio, with each having its own merits. Gold’s positive impact is a given at this point, and its ability to maintain its value is second to none.

However, if you are not averse to risks, you can also consider BTC. However, given its constant fluctuations and price variations, you must make sure that you never start trading without a comprehensive strategy in mind. Determine what your financial goals are and what are the tools you can use to achieve them. 

The volatility can cause you to believe that being fast is the best way to act when it comes to Bitcoin, but the steady approach will always yield much more constructive results.