The BTC/Gold ratio has ended its three-month uptrend, signaling a shift in investor preference towards gold. The ratio, which climbed from 12 to 18 since March, recently broke below a key trendline, indicating a move back to traditional safe-haven assets. This shift is supported by fund flows, with U.S. Bitcoin ETFs seeing over $2 billion in outflows in the past two weeks, while gold and precious metals ETFs attracted $2.34 billion in net inflows for the week ending May 20.
Analysts attribute this trend reversal to rising U.S. Treasury yields, expectations of prolonged high interest rates, and geopolitical volatility in the Middle East. These factors have led markets to reallocate towards traditional hard assets, weakening Bitcoin's narrative as a "store of value."
BTC/Gold Ratio Declines as Investors Favor Gold ETFs
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