Bitcoin’s performance has lagged behind gold, with the BTC-to-gold ratio falling since March.
Emerging central banks’ demand has driven gold to record highs, despite high interest rates.
Corporates are increasingly adding Bitcoin to treasuries, though central banks remain cautious.
Bitcoin has lost its value against gold, with the Bitcoin-to-gold ratio falling from 33 ounces in March to 24 ounces by September, according to Kaiko.
This decline is partly due to a broader sell-off in risk assets, but it also highlights the strong performance of gold. Demand for gold has surged, driven by central banks seeking to diversify their reserves.
Meanwhile, gold demand surged to record highs between March and August. Central banks in emerging markets drove this demand, seeking to diversify away from dollar-denominated assets. Many central banks continued to accumulate gold even when high interest rates typically discourage it. These conditions supported the increase in the price of gold.
