BTC-gold ratio climbs as markets turn risk averse on fed, oil spike

Bitcoin is currently outperforming gold, a traditional safe haven, as hawkish signals from the U.S. Federal Reserve and a sharp rise in oil prices fuel risk aversion in markets. Gold has dropped 2% while Bitcoin lost only half that amount, causing the BTC-gold ratio to climb. This divergence is partly attributed to gold being overbought after a significant rally earlier in the year, whereas Bitcoin was oversold following a 50% drop since October. The macroeconomic environment is pressured by the Fed pushing back against expectations for imminent interest rate cuts, which negatively impacts risk assets like U.S. equities and crypto-related stocks. Simultaneously, the conflict with Iran has pushed Brent crude oil up over 6% to around $117 per barrel, signaling supply disruptions and adding to inflationary concerns.

(Source：CoinDesk)