2 days ago
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Key Takeaways
- Wood sees Bitcoin gaining ground against gold.
- Outperformance does not always mean dollar gains.
- A gold rebound would test Bitcoin’s lead.
Discussing a chart in ARK Invest’s “In The Know” video, Wood noted that Bitcoin was rising while gold was falling. She described the improving Bitcoin-to-gold ratio as a turn in Bitcoin’s favour:
So we do think the turn is in here for Bitcoin.
Bitcoin can beat gold without rising in dollars
The ratio divides Bitcoin’s dollar price by gold’s dollar price per troy ounce, showing how many ounces one Bitcoin could buy. It rises when Bitcoin appreciates faster than gold, but it can also improve because gold falls while Bitcoin holds its price.
A rising ratio therefore does not guarantee a dollar profit. Bitcoin can lose value and still outperform gold if the metal falls further. The difference becomes clear when the two price changes are calculated together:
English (US)