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Bitcoin-Gold Ratio at 12-Week Low as U.S. Physical Gold Deliveries Soar
Traders have been loading the yellow metal on U.S.-bound planes. Investment banking giant JPMorgan plans to deliver $4 billion of gold to New York this month.
Updated Feb 5, 2025, 1:25 p.m. Published Feb 5, 2025, 12:30 p.m.
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What to know:
- The bitcoin-gold ratio has hit the lowest since Nov. 14.
- Gold has surged 10% this year to new highs on safe haven buying, Chinese demand.
- BTC's spot ETF inflows have been primarily arbitrage plays.
Gold (XAU) is reaffirming its status as a safe haven asset amid ongoing fears of a U.S.-led trade war, while bitcoin struggles to gather upside traction. The dynamic is driving the bitcoin-gold ratio lower.
The ratio between bitcoin's USD price and gold's per ounce dollar price has dropped to 34, the lowest since Nov. 14, almost testing the previous peak hit in March 2024, data from charting platform TradingView show. It's down 15.4% since hitting a peak above 40 in mid-December.
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Gold's year-to-date surge of nearly 10% to a per-ounce record price of $2,877 has been driven by safe-haven demand amid the escalating U.S.-China trade war, according to Reuters.
The tariffs threat has dedicated metal products Comex futures prices trading substantially above the spot price in recent months. That has traders loading U.S.-bound planes with the yellow metal. The investment banking giant JPMorgan plans to deliver $4 billion of gold bullion to New York this month, according to The Guardian. Plus, Chinese demand for gold has surged due to the Spring Festival holidays.
Meanwhile, inflows into U.S.-listed spot Bitcoin ETFs have primarily come from traders engaging in non-directional arbitrage bets on BTC, according to 10x Research.
"The ETF buying could be offset by simultaneous spot or futures selling (unwinding of long positions), dampening any significant price impact," Markus Thielen, founder of 10x Research, said in a note to clients Monday, noting the $4 billion in inflows into the U.S. spot-listed ETFs since the release of the inflation data three weeks ago.
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BlackRock's digital assets head: Leverage-driven volatility threatens bitcoin’s narrative
Rampant speculation on crypto derivatives platforms is fueling volatility and risking bitcoin’s image as a stable hedge, says BlackRock’s digital assets chief.
Bilinmesi gerekenler:
- BlackRock digital-assets chief Robert Mitchnick warned that heavy use of leverage in bitcoin derivatives is undermining the cryptocurrency’s appeal as a stable institutional portfolio hedge.
- Mitchnick said bitcoin’s fundamentals as a scarce, decentralized monetary asset remain strong, but its trading increasingly resembles a "levered NASDAQ," raising the bar for conservative investors to adopt it.
- He argued that exchange-traded funds like BlackRock’s iShares Bitcoin ETF are not the main source of volatility, pointing instead to perpetual futures platforms.
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