The widely-tracked copper-to-gold ratio, a proxy for global economic health, has fallen over 15% this year, signaling potential risks for cryptocurrency investments.
Despite positive indicators for Bitcoin, the sliding copper-to-gold ratio suggests a troubling economic trend, with the ratio dropping by 10% after China’s recent stimulus measures.
Copper's outperformance to gold traditionally signals economic growth, but the current downtrend in the copper-to-gold ratio hints at economic malaise that risks outweighing crypto gains.
The year's biggest loss in the copper-to-gold ratio since 2018 raises concerns for risk assets, such as cryptocurrencies, especially amidst monetary policy shifts and external economic pressures.
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