A notable shift from gold to bitcoin is underway following the U.S. presidential election, as indicated by a significant spike in the BTC-to-gold ratio. The ratio surged 12% Wednesday after pro-crypto candidate Donald Trump won the U.S. presidency, marking bitcoin’s largest single-day outperformance relative to gold since February 2022, data from TradingView shows.
The surge underscores a trend reversal that’s been brewing over recent months, with some analysts forecasting a continued bitcoin price rally toward $80,000 by year-end. The shift follows bitcoin’s recent bullish momentum as gold’s appeal dims, likely sparking a rotation of capital from traditional safe-haven assets to the leading cryptocurrency.
“This rotation is a pivotal moment for bitcoin, supported by macroeconomic factors like currency debasement and a pro-crypto policy shift under Trump,” said Noelle Acheson, author of Crypto Is Macro Now. “The downtrend, indicative of gold’s dominance since March, is finally reversing. Investors globally are taking note.”
The reversal was marked by the end of an eight-month downtrend connecting highs in March and June, suggesting that bitcoin may continue to outperform gold as more investors reallocate funds toward BTC.
Trump’s administration is expected to bring regulatory clarity for digital assets, potentially building a strategic bitcoin reserve, a move that could enhance BTC’s long-term value proposition. Meanwhile, higher interest rates anticipated under Trump’s fiscal policy could weigh on gold, which typically loses its appeal in high-interest environments, further driving demand toward bitcoin.
As BTC soars, analysts suggest that these market shifts could lay the groundwork for increased institutional participation and a bullish outlook for bitcoin through the end of the year.
