BTC’s 60% Surge in 2024 Faces Challenges Amid Copper-Gold Ratio Decline

According to COINOTAG, on October 28, CoinDesk market analyst Omkar Godbole highlighted that Bitcoin (BTC) has experienced a substantial increase of 60% since the start of the year. However, it is crucial to note that the majority of these gains were concentrated in the first quarter, with subsequent attempts by bulls to maintain prices above $70,000 proving unsuccessful. This struggle is largely attributed to various factors, including significant concerns regarding asset oversupply linked to the Mt. Gox exchange’s compensation payouts. Additionally, the copper-to-gold ratio has been on a decline since May, reflecting increasing market risk aversion. This trend escalated in July, leading to a notable decline in BTC, which plummeted from $65,000 to $50,000 in early August. Historically, BTC’s strongest performance years have correlated with rising copper-to-gold ratios, raising skepticism about bullish projections for BTC reaching $100,000 by year-end. Understanding the copper-to-gold ratio, a key economic cycle indicator, becomes essential for evaluating future market sentiments.