TLDR
- CryptoQuant analyst identifies rare bottom signals in Bitcoin-gold ratio that historically precede major price rallies
- JP Morgan projects Bitcoin could reach $165,000 by 2025 based on current undervaluation versus gold
- Bitcoin trades at $106,925, two standard deviations below ideal range, marking potential accumulation zone
- Short-term holder MVRV Bollinger bands show third oversold signal after previous occurrences at $49,000 and $74,000
- Institutional investors advised to reconsider gold allocations as Bitcoin presents stronger risk-reward profile
The Bitcoin-to-gold ratio has reached levels that crypto analysts describe as a historic buying opportunity. Multiple indicators suggest the cryptocurrency may be positioned for a strong recovery.
Joao Wedson from CryptoQuant has flagged rare bottom signals in the BTC-gold ratio using normalized oscillators. These signals typically emerge during extreme market volatility and steep price declines. According to Wedson, such conditions have historically marked lows that precede powerful Bitcoin rallies.
The analysis presents two key indicators. A blue signal shows the current bottom in the ratio. A green signal appears when multiple indicators align at their lowest points, creating what Wedson calls one of the most compelling setups in years.
JP Morgan Sees Bitcoin Undervalued
JP Morgan’s research division, led by Nikolaos Panigirtzoglou, has determined Bitcoin is undervalued relative to gold. The banking giant forecasts a potential Bitcoin price of $165,000 by 2025 based on this assessment.
Frank Fetter from Vibes Capital Management identified an oversold print on short-term holder MVRV Bollinger bands. This marks only the third time such a signal has appeared. Previous occurrences happened during the Yen Carry Unwind at $49,000 and the Tariff Tantrum at $74,000, both followed by price recoveries.
Former BitMEX CEO Arthur Hayes echoed the bullish sentiment. Hayes characterized current market conditions as one of the most compelling buying opportunities in recent years.
Current Market Position
Bitcoin currently trades around $106,925, showing a 0.42% increase over 24 hours. The cryptocurrency has posted gains of 14.6% year-to-date and nearly 59% over the past year.
Crypto outlet Milk Road reports Bitcoin is trading two standard deviations below its ideal range. This positioning historically coincides with accumulation phases rather than market peaks. The platform suggests macro trends point toward a continued bull run through 2026.
Market analyst Pat described the sharp decline in the Bitcoin-gold ratio as a “generational bottom event.” The ratio serves as a barometer of investor confidence between the two assets.
Historical Patterns Support Bullish Case
When the Bitcoin-gold ratio bottoms out, it typically signals the end of Bitcoin underperformance. Past cycles show Bitcoin surged to new all-time highs within months of similar ratio lows.
The 2020 gold correction preceded a period of strong Bitcoin growth. Current conditions mirror those historical patterns, according to multiple analysts.
Wedson directed his analysis specifically at institutional investors who have increased gold holdings recently. He argues Bitcoin now offers a superior risk-reward profile. “If I were you, I’d take a close look at this chart,” Wedson stated.
The recent debate between economist Peter Schiff and Binance’s CZ highlighted ongoing discussion about Bitcoin’s role as digital gold. While Schiff claimed Bitcoin failed in this capacity, CZ defended the cryptocurrency’s long-term value proposition.
Bitcoin remains up 14.6% year-to-date with current trading at $106,925, reflecting what analysts view as a deep value zone based on standard deviation measurements from its historical price range.
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