Gold Leads 2025 Rally as Bitcoin-Gold Ratio Signals Upcoming Breakout
Gold has soared 33% in 2025, far outpacing the Nasdaq 100 and nearly doubling bitcoin’s (BTC) year-to-date gains. The BTC-XAU ratio, showing how many ounces of gold are needed to buy one BTC, has dropped to 31.2 ounces, down from 40 ounces in December.
The rally is underpinned by declining government bond yields in major Western economies, driven by high debt levels, persistent inflation, and slowing growth—factors that reinforce gold’s role as a safe-haven benchmark.
On the charts, the BTC-XAU ratio is forming a long-term ascending triangle pattern dating back to 2017. After a modest 25% correction from late-2024 highs—far shallower than prior drawdowns of 75–84%—technical signals point to a potential breakout in late Q4 2025 or early 2026.
Gold’s continued strength cements its benchmark status, while the BTC-XAU ratio hints at a decisive move for bitcoin relative to the precious metal.
