Can Gold And Silver Prices Predict Bitcoin’s Next Move?
The BTC/Gold and BTC/Silver Mayer Multiples suggest Bitcoin is undervalued, signaling a potential buy-the-dip opportunity before a major rally.Summary
Some analysts suggest that physical precious metals like gold and silver can help predict Bitcoin's future price movements using the BTC/Gold and BTC/Silver Mayer Multiples. Created by Trace Mayer, the standard Mayer Multiple compares Bitcoin's current price to its 200-day moving average; a ratio below 1 suggests undervaluation. When applied to precious metals, a BTC/Metal Mayer Multiple below 1 historically signals a strong buying opportunity for Bitcoin, as seen in past market bottoms. For instance, the BTC/Gold Multiple hit 0.70 in November 2022, preceding a significant price surge. Currently, both ratios suggest Bitcoin is lagging, with gold up 54% and silver up 63% year-to-date, while Bitcoin is up only 21%. If historical patterns repeat, this undervaluation suggests Bitcoin could soon rebound dramatically, supported by favorable macro conditions like lower interest rates and increased institutional adoption.
(Source：BeInCrypto)