The Bitcoin-to-gold ratio has reached its lowest point since November 2023, but is still some distance from the lowest point of the last bear market.

According to market data released by The Kobeissi Letter, the precious metals market has recently shown significant strength, while Bitcoin has entered a consolidation phase.

This divergence in performance has caused key ratio indicators to fall to multi-month lows. As of this weekend, the Bitcoin-to-silver ratio has fallen to 1104, its lowest level since September 2023. Notably, since May of this year, due to a sharp rise in silver prices and its continued outperformance of Bitcoin, this ratio has cumulatively fallen by 67%, indicating a significant increase in silver's market appeal during this period.

Meanwhile, the Bitcoin-to-gold ratio shows a similar trend, currently at 19, reaching its lowest point since November 2023.

This ratio has fallen by 50% since January of this year, further reflecting the recent market environment in which gold, as a traditional safe-haven asset, has significantly strengthened, while Bitcoin has temporarily lost some of the leading momentum it had in early 2023-2024.

Comparing current data with historical cycles further reveals the cyclical changes in market sentiment. At the trough of the 2022 cryptocurrency bear market, the Bitcoin/silver ratio was approximately 680, and the Bitcoin/gold ratio was 9.

While both ratios are still above their bear market lows, the significant declines in recent months indicate a marked shift in fund flows—amidst rising market uncertainty, some funds may be flowing back into physical assets like gold and silver, while cryptocurrencies are temporarily entering a period of relative calm.

This ratio change not only reflects short-term asset rotation but may also indicate a reassessment of the market's expectations regarding the macroeconomic environment, monetary policy, and risk appetite. Investors are closely monitoring the subsequent movements of these ratios to determine whether the current divergence between Bitcoin and precious metals will continue or whether they will revert to synchronized movements. (Source: BLOCKBEATS)