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Copper-to-Gold Ratio Tops 200-Day Average, Reviving a Bitcoin Watch Signal

The shift has a record of foreshadowing bitcoin rallies in prior cycles.

Overview

  • The copper-to-gold ratio, which moved above its 200-day average Wednesday, sits near 0.00142 with copper at about $6.65 per pound and gold near $4,700 per ounce.
  • The ratio has climbed roughly 25% from recent lows and serves as a gauge of risk appetite because copper tracks industrial demand while gold attracts buyers during stress.
  • The bitcoin correlation stands near -0.11 after rebounding from around -1.00, showing the link is re-emerging but not yet moving in the same direction.
  • Past spikes in the ratio in 2013, 2017, 2021, and a September 2020 breakout lined up with early phases of major bitcoin advances, though no outcome is assured.
  • Market technicians say bitcoin is holding an ascending channel from April’s lows with support around $78,800 to $77,500 and resistance near $82,000 to $83,000.