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What is really driving the Bitcoin trend behind the scenes? Besides the well-known halving cycle, there is a macro indicator that many people overlook—the Copper-Gold Ratio—that is subtly influencing market sentiment.
The logic of the Copper-Gold Ratio is quite straightforward. Copper represents industrial demand and economic vitality, while gold signifies safe-haven demand and market panic. When the ratio rises, it indicates that global funds are chasing risk assets; when it falls, market risk aversion begins to spread.
Interestingly, looking back at history, the peaks of the Bitcoin cycles in 2013, 2017, and 2021 all coincided with high levels of the Copper-Gold Ratio. Near 6000 points at the end of 2013, also close to historical highs in early 2017, and in the long-term peak area in early 2021. This is no coincidence—when economic expectations shift toward safety, high-risk assets also start to come under pressure.
Even more noteworthy is another pattern: whenever the Copper-Gold Ratio shows reversal signals after a long-term downtrend, Bitcoin often follows with a trendful rally. The underlying logic is that after long-term risk aversion dissipates, global liquidity flows back into risk assets. Combined with supply-side factors from the halving cycle, the explosive potential is further amplified.
This moment is worth pondering. The Copper-Gold Ratio has been oscillating at the bottom for quite some time, and the global macro landscape is also changing. Is this indicator hinting at a new turning point? Will Bitcoin usher in the next cyclical opportunity? Perhaps we should keep a close eye on this often-overlooked market signal.
What do you think about this indicator? Feel free to share your thoughts.