Bitcoin has seen a 60% increase in value so far this year, but most of the gains happened in the first quarter. The failure to establish new support levels above $70,000 has been attributed to concerns over oversupply from the Mt. Gox exchange collapse. Additionally, the copper-to-gold ratio has been declining since May, signaling a risk-off sentiment in financial markets.
This decline accelerated in July and contributed to a period of risk aversion in August, when BTC fell from $65,000 to $50,000. Bitcoin’s best years have been accompanied by an upward trend in the copper-to-gold ratio, and the current decline casts doubt on optimistic expectations for BTC to reach $100,000 by the end of the year.
The copper-gold ratio is an indicator used to observe the economic cycle and market risk appetite.
