Crypto: Bitcoin Vs. Gold: BTC Is A 'better Opportunity' Than In 2017, Data...

Bitcoin could start catching up to gold as soon as February, as traders anticipate BTC to recover from its record lows versus gold this year.

Bitcoin (BTC) fell to a record low versus gold (XAU) in January, making it a better buying opportunity than what preceded the 2015–2017 bull market, analysts say.

BTC vs gold hit a record low, a level that has lined up with past major bottoms.

Some analysts warn that a rotation to BTC from gold is not guaranteed.

On Saturday, Bitcoin’s value compared to gold fell to its lowest level ever after adjusting for the global money supply, data from Bitwise Europe showed.

The indicator shows when Bitcoin is unusually strong or weak versus gold. It has now moved near an extreme zone (the -2 level in the chart below) that in the past appeared around BTC market bottoms.

The last time this band fell to similar levels was in 2015, indicating extreme BTC undervaluation to gold. That preceded 11,800% BTC price gains to $20,000 from around $165 within just two years. Analyst Michaël van de Poppe said in a Saturday X post:

His comment echoed analysts who expect some capital to rotate from gold into Bitcoin this year.

That includes Bitwise European head of research, André Dragosch, and Swyftx lead analyst Pav Hundal. The latter said such rotations could start occurring in February or March.

The bullish views emerged as gold prices have doubled over the past year, while Bitcoin has fallen by 18% over the same period.

Source: CoinTelegraph