The 2020 signal returns: Why the copper-to-gold breakout could point to bitcoin (BTC) breakout

The copper-to-gold ratio has recently surpassed its 200-day moving average for the first time since September 2020, a technical signal that has historically preceded significant rallies in Bitcoin's price. This ratio, currently at 0.00142 with copper at $6.65/lb and gold near $4,700/oz, has seen previous surges in 2013, 2017, and 2021 that aligned with major Bitcoin price increases. While the current correlation coefficient between Bitcoin and the ratio is a weak -0.11, it has rebounded from -1.00, indicating a strengthening relationship. Historically, this ratio is considered a gauge of economic momentum and investor risk appetite, with rising values signaling a more risk-on environment. The copper-to-gold ratio has often led Bitcoin by several weeks to months, suggesting that the current upward move may be an early indicator of future Bitcoin strength.

(Source：CoinDesk)