Bitcoin (BTC) May Outperform Gold (XAUUSD) If the US Stock Market Declines

Bitcoin is considered as digital gold. Yesterday, the Bitcoin price dropped by around 6.37% – the most severe drop since the March 3 decline of 8.53%.

Bitcoin, often regarded as digital gold, has seen a significant price drop yesterday. The BTC price dropped by 6.37% to $82,362.27. The crypto market is struggling to recover from yesterday’s correction.

Yesterday, the gold-to-BTC ratio was 0.034. Interestingly, Bloomberg Economics’ analysis focuses on what could be expected in the gold-BTC market in the coming days. The price of gold now stands at $2,909.42.

There is a high chance for a sharp shift in the gold-to-BTC ratio in the near future.

Gold-to-Bitcoin Ratio Could Drop

A drop in the gold-to-BTC ratio means the price of gold has decreased in comparison to the price of BTC.

In early March 2024, the gold-to-BTC ratio was very close to its current level. In early September 2024, it touched the yearly peak of 0.047.

In late November 2024, when the US political landscape shifted in favour of the crypto industry, the ratio was at 0.029.

On the first day of this year, the ratio was around 0.028. Though in late January 2025, it slipped to as low as 0.026, in February, it showcased constant growth. On February 26, it touched a peak of 0.35. Currently, the ratio remains at 0.034.

Notably, in February, when the ratio experienced steep growth, the BTC market recorded a severe drop of 17.5%.

A post on X by Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, suggests that there is a chance of the gold-to-Bitcoin ratio declining in the coming days.

Gold $3,000, Bitcoin $70,000? The ounces of #gold equal to a #Bitcoin at about 28x on March 9 is at risk of dropping toward 21x, based on Bloomberg Economics' model. My bias is leaning that way, especially if the US #stockmarket reverses some of last year's almost $12 trillion… https://t.co/rZ87Z7p7Rq

— Mike McGlone (@mikemcglone11) March 9, 2025

Bitcoin May Gain Strength Over Gold

What McGlaone’s post indicates is that Bitcoin could become more valuable than gold in the coming days.

The analyst states that if the US stock market falls, it may affect gold and Bitcoin.

In the last month, the S&P 500 has recorded a fall of 4.87%. In the last week alone, the market has plummeted by over 3.50%. The YTD performance of the S&P 500 market remains at 1.68%.

In conclusion, Bloomberg’s analysis suggests that Bitcoin may gain more value compared to gold in the coming days, especially if the US stock continues to decline. The recent shifts in the gold-to-BTC ratio highlight Bitcoin’s potential strength. If the trend follows past patterns, Bitcoin’s price could rise while gold’s comparative value decreases.

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FAQs

Bitcoin may outperform gold if the US stock market declines, as suggested by Bloomberg’s analysis of the gold-to-BTC ratio.

Projecting a 10-year growth in a volatile asset like Bitcoin seems a far-stretched notion. The BTC price is expected to cross $600,000 by 2030. With global adoption, Bitcoin could be worth  1 million dollars.