The Copper-to-Gold Ratio Dips to a Low Not Seen Since November 2020, Putting Bitcoin Under Pressure
Publication Time:2024-07-24 15:31:06
The most recent figures from July reveal that the Copper-to-Gold ratio has dropped by more than 8%, hitting a new low since November 2020. This metric is often utilized to assess investors' inclinations towards risky assets, including technology stocks and cryptocurrencies, compared to traditional safe havens such as gold and US government bonds. Macroeconomic analysis indicates that as the global economy recovers, a rise in the Copper-to-Gold ratio typically coincides with stock market increases. Yet, when economic uncertainty intensifies, the demand for gold grows, resulting in a decrease of this ratio. As such, noticing a persistent decline in this indicator might suggest potential downward pressure on risk assets like Bitcoin.
Bitcoin
Risk Assets
Copper-to-Gold Ratio
Downward Fluctuation
Investment Preferences