Is Bitcoin Losing to Gold? BTC at Risk of Falling to $70K

• Analyst predicts that Bitcoin could drop to $70K as the BTC-to-gold ratio nears 21X.
• Bitcoin is trading at $83,272, down 2.90%, while gold strengthens amid market fears.
• The ratio was low in January 2025 at 0.028 but quickly rose to 0.035 in February.

Bitcoin recently experienced a major price decline, reducing its value by 6.37%. This was the biggest price drop since March 3, when prices dropped by 8.53%. Bitcoin’s value stands at $82,362.27 as it strives to rebound from its market decline. The market shows sustained volatility, which has caused the cryptocurrency to experience recent price declines under close examination by market analysts.

Bitcoin’s value directly correlates with how other financial instruments like gold move in the market. Bloomberg Economics recently released a detailed assessment of the changing gold-to-bitcoin relationship. The ratio has increased to 0.034 from its previous level of 0.026 in February. Based on the recent changes in their value relationship as tracked by the gold-to-bitcoin ratio, Bitcoin could emerge as a more powerful investment than gold.

The Gold-to-Bitcoin Ratio: A Potential Decline

The ratio shows Bitcoin’s market position with gold as a measurement tool. A reduction in this metric indicates Bitcoin grows in value at a faster rate than gold does. The ratio maintained a level similar to the present near the beginning of March 2024. The ratio reached its peak of 0.047 in September 2024 and later declined to 0.029 in late November due to U.S. political developments that benefited the crypto industry. The ratio experienced another drop to 0.028 when January 2025 began and quickly rose to 0.035 in February.

Source; TRADINGVIEW

According to analyst Mike McGlone, the ratio shows signs of reducing in future daily periods. McGlone projects the relative value of Bitcoin versus gold to rise in the coming months, which could drive the ratio to 21X from its current position of 28X. His predictions stem from his belief that U.S. stock market reversals will lower gold values while making Bitcoin more profitable.

Bitcoin’s Market Outlook and External Factors

External market forces impacting U.S. stock market performance continue to modify Bitcoin price movements and the ratio between the two assets. Further, the SP 500 displayed a 4.87% decrease, and an additional loss exceeding 3.50% was delivered last week. The negative sentiment from traditional markets created uncertainty affecting the overall cryptocurrency market. 

Bitcoin’s ability to surpass gold in value will become more likely if the American stock market demonstrates further declining performance. The current market’s overall attitude is characterized by caution. According to his predictions, anti-crypto advocate Peter Schiff anticipates the current correction to persist through multiple years. On the other hand, a whale, who shorted Bitcoin at $96,500, profited significantly, indicating that some market participants expect further downward pressure on Bitcoin’s price in the near term.

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