The ratio between copper and gold prices has risen above its 200-day moving average, a significant milestone not seen since September 2020.
Summary
- The ratio now stands at 0.00142, with copper at $6.65 per pound and gold near $4,700 per ounce, up 25% from its recent lows.
- Previous surges in 2013, 2017, and 2021 aligned with the early stages of major Bitcoin price cycles.
- The correlation between Bitcoin and the ratio has rebounded sharply from near negative 1.0, suggesting the relationship is beginning to strengthen.
The ratio between copper and gold prices is a key economic indicator. It compares copper – a metal that does well when the economy is growing – to gold, which typically performs well when investors are worried and seeking safe investments.
The latest market data suggests investors are becoming more willing to take risks. This is indicated by a recent increase in a key ratio, which has climbed 25% from its recent low point and currently stands at 0.00142.
Breaking above the 200-day moving average is a significant event, and it hasn’t happened to this extent since September 2020. The last time this occurred, it marked the beginning of a large Bitcoin price increase, from around $10,000 to a new high at the time. Similar patterns in 2013, 2017, and 2021 also preceded major Bitcoin price surges, suggesting this could be a bullish signal.
What the signal means for Bitcoin now
Currently, Bitcoin and the ratio of copper to gold have a slightly negative correlation of -0.11, calculated over the past 20 days. This represents a significant recovery from a much stronger negative correlation near -1.0, indicating that their recent opposite movements are likely ending.
In the past, Bitcoin and traditional assets have tended to move in the same direction – especially during periods of strong growth for Bitcoin. This happens as investors become more willing to take risks overall.
This ratio often signals where Bitcoin’s price is headed, usually predicting changes weeks or even months in advance. So, if Bitcoin reacts, it will likely happen gradually over the next few weeks, not all at once.
A recent positive signal, combined with a bullish indicator from CryptoQuant—which turned positive on May 12th for the first time since March 2023—suggests potential for further gains. The last time CryptoQuant’s indicator flipped positive, Bitcoin’s price rose significantly, from $20,000 to over $73,000 by April 2024. Currently, Bitcoin is trading between $79,000 and $82,000. Analysts see strong resistance around $82,000-$83,000, and believe $77,500 will act as a key support level.
Just because these indicators are showing positive signs doesn’t mean prices will definitely keep going up. Experts always point out that just because two things happen together doesn’t mean one causes the other. Broad economic trends can sometimes create misleading signals, especially when large investments and new rules are influencing Bitcoin’s price in ways the copper-gold ratio doesn’t reflect.
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2026-05-14 02:38