Recently, I heard a phenomenon while chatting with industry insiders: in the first half of this year, everyone was still discussing Bitcoin's position as digital gold, but in reality, the actual gold and silver prices soared wildly, while BTC basically stayed in place. This observation really hits the nail on the head.
The data is right here: as of this weekend, the Bitcoin-to-silver ratio has fallen to 1104, hitting the lowest level since September 2023. From May to now, this ratio has plummeted by 67%. Comparing to gold, it’s not much better— the ratio dropped from nearly 40 at the beginning of the year to 19, a new low since November 2023. Looking back at the most severe moment of the 2022 bear market, the ratio was only around 680 to 9. Now, the gains in precious metals are almost catching up to the ratio gap from that bear market.
Why is this happening? Ultimately, certainty has triumphed over potential. Behind gold, there’s massive central bank accumulation and continuous ETF inflows as backing; silver serves both as a safe-haven asset and has industrial demand to support it, both of which are considered safe bets by institutional capital. In contrast, Bitcoin’s institutional funds are actually flowing out through spot ETFs. The story of digital gold as a safe haven couldn’t hold up under real risk tests, ultimately exposing its high-risk asset nature.
In the past, the industry often boasted that BTC could compete with precious metals for safe-haven funds, but reality gave a slap. In a market environment where everyone seeks stable returns, gold and silver— with centuries of trust— are naturally more popular than a digital asset with just over ten years of history. This sharp correction in the ratio essentially reflects that capital is voting with its money, favoring more proven hard currencies.
The data is right here: as of this weekend, the Bitcoin-to-silver ratio has fallen to 1104, hitting the lowest level since September 2023. From May to now, this ratio has plummeted by 67%. Comparing to gold, it’s not much better— the ratio dropped from nearly 40 at the beginning of the year to 19, a new low since November 2023. Looking back at the most severe moment of the 2022 bear market, the ratio was only around 680 to 9. Now, the gains in precious metals are almost catching up to the ratio gap from that bear market.
Why is this happening? Ultimately, certainty has triumphed over potential. Behind gold, there’s massive central bank accumulation and continuous ETF inflows as backing; silver serves both as a safe-haven asset and has industrial demand to support it, both of which are considered safe bets by institutional capital. In contrast, Bitcoin’s institutional funds are actually flowing out through spot ETFs. The story of digital gold as a safe haven couldn’t hold up under real risk tests, ultimately exposing its high-risk asset nature.
In the past, the industry often boasted that BTC could compete with precious metals for safe-haven funds, but reality gave a slap. In a market environment where everyone seeks stable returns, gold and silver— with centuries of trust— are naturally more popular than a digital asset with just over ten years of history. This sharp correction in the ratio essentially reflects that capital is voting with its money, favoring more proven hard currencies.
