The Bitcoin to Gold Ratio page in the EdgeFinder provides traders with a unique way to gauge market risk sentiment. This simple but effective indicator compares the price of Bitcoin—a high-risk, speculative asset—to gold—a traditional safe-haven store of value. By dividing the current price of Bitcoin by the price of gold, the EdgeFinder helps traders determine whether markets are operating in a risk-on or risk-off environment.

When the ratio is rising, Bitcoin is outperforming gold, signaling increased investor risk appetite. When the ratio is falling, it suggests market participants are favoring safety and moving capital into gold.

How to Use the EdgeFinder's Bitcoin to Gold Ratio Page

On the Bitcoin to Gold Ratio page, you’ll find a historical chart that tracks the ratio over time, along with a moving average to help identify the current trend.

What to look for:

Rising Ratio = Risk-On Sentiment

A climbing Bitcoin to Gold ratio generally indicates strong performance in speculative assets like tech stocks and crypto. This is typically a time when investors are optimistic and favor higher returns despite higher risks.

Falling Ratio = Risk-Off Sentiment

When the ratio declines, it signals a shift to safer investments like gold, the U.S. dollar, or the Japanese yen. This may occur during times of economic uncertainty, inflation concerns, or geopolitical risk.

Trend Direction vs. Mean Reversion

In the short term, traders can use the 20-period moving average on the chart to gauge momentum. If the ratio is trending above the moving average, it supports a bullish risk environment. Over the long term, extreme deviations from the average may point to potential mean reversion opportunities.

Why It Matters

Understanding market risk sentiment is essential for aligning your trading strategy with broader trends. The Bitcoin to Gold Ratio serves as a market-wide sentiment barometer that you can use to:

Anticipate strength or weakness in speculative assets (like Bitcoin, NASDAQ, or tech stocks)

Support trade decisions in currency pairs—favoring safe havens during risk-off periods

Confirm broader macroeconomic trends alongside other EdgeFinder tools

practical use cases

Confirm Risk Sentiment:
If the ratio is rising and the EdgeFinder also shows bullish sentiment on indices like the S&P 500 or assets like BTCUSD, this adds confidence to long-side positions in those risk assets.

Spot Shifts in Market Mood:
A sharp drop in the ratio might be an early signal that investors are getting nervous, which could lead to declines in equities, crypto, and other risk-on assets.

Support Trade Filtering:
Use the ratio as part of your overall market environment checklist—only taking setups that align with the prevailing sentiment.

Video Tutorial

How to Trade with the Bitcoin to Gold Ratio: A Powerful Sentiment Indicator

Frequently Asked Questions (FAQs)

what is the bitcoin to gold ratio?

It’s simply the price of Bitcoin divided by the price of gold. The number represents how many ounces of gold you’d need to buy one Bitcoin.

Why does it matter for trading?

It helps traders understand whether investors are embracing risk or seeking safety, which can influence asset performance across the board.

Where can I find it?

The Bitcoin to Gold Ratio is located under the Market Sentiment section of the EdgeFinder.

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Leveraged trading in foreign currency contracts or other off-exchange products on margin carries a high level of risk and is not suitable for everyone. You may lose more than you invest. Price and performance data is provided for informational purposes only and is not investment advice. Past performance is not indicative of future results.

There is a significant degree of risk involved in trading securities. With respect to foreign exchange trading, there is considerable risk exposure, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.

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How to Use the Bitcoin to Gold Ratio

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