Analyst: Sharp decline in copper-gold ratio casts doubt on BTC's year-end surge to $100,000

BlockBeats news, on October 28th, CoinDesk market analyst Omkar Godbole said that BTC has risen 60% since the beginning of the year, but most of the rise occurred in the first quarter, and long positions have failed to establish new support levels above $70,000. This failure of long positions is attributed to multiple factors, including concerns about supply surplus caused by the compensation of the collapsed exchange Mt. Gox. Coincidentally, the ratio of copper to gold has been declining since May, sending a signal of risk aversion. This downward trend accelerated in July, indicating a brief risk aversion in the financial market at the beginning of August, during which BTC dropped from $65,000 to $50,000. In addition, the best years for BTC - 2013, 2016-17, and 2020-21 - were accompanied by a rising trend in the copper-to-gold ratio. If the past can be used as a reference, the sharp decline in the copper-to-gold ratio raises doubts about the optimistic expectation that BTC will rise to $100,000 by the end of the year. BlockBeats note: The copper-to-gold ratio is the ratio between the copper price and the gold price, used to observe economic cycles and market risk preferences.