The gold is the Standout Performer of 2025Climbing more than 33%.
That is three times the benefit of the NASDAQ 100 index and almost double Bitcoin’s (BTC) Performance. In practice that means it only takes 31.2 ounces of gold to buy a BTC, a proposal known as the BTC-Xau ratio, from 40 ounces last December.
Metal, commonly used as a shelter in times of financial stress, is supported by the collapse of government bonds in major western economies, a reflection of high debt burden, ongoing inflation concerns and slowing growth. These dynamics reinforce the historical role of gold as a store of value, and I -highlight why it is necessary to be a benchmark against which all other investments are measured.
The technical analysis shows the BTC-Xau ratio has been compiled within a large triangle, a bullish continuation pattern formed since 2017. The level of ratio of 2024 mirrored peaks visible at the end of 2021, but since nearly 25%corrected. The structure now points to a potential breakout late in the fourth quarter or early next year.
Essentially, previous cycles in this ratio saw serious drawdowns – 84% in 2019, 75% in 2020 and 78% in 2022 – before new highs were established. The current pullback is far from the shallow, suggesting the underlying strength and maintaining the long -term bullish case.
