Markets follow capital rotation cycles. When institutional investors take profits on one asset, they transfer wealth to another. Understanding these cycles is key to anticipating major moves.
The BTC/Gold ratio reveals these rotations: when the ratio rises sharply, capital flows from traditional safe-havens (gold) into risk assets (BTC). When it falls, money exits crypto back into gold — the ultimate flight to safety.
BTC/Gold Ratio = BTC Price / Gold Price per oz → How many ounces of gold one Bitcoin buys
Correlation = Pearson correlation of daily returns → +1 = move together, -1 = inverse, 0 = independent
Relative Strength = (BTC return - Gold return) → Positive = BTC outperforms, Negative = Gold outperforms
Volatility Ratio = BTC vol / Gold vol → Shows how much riskier BTC is vs Gold (typically 5-10x)
More formulas coming soon — Sharpe comparison, rolling beta, Z-score divergence...
This page analyzes the correlation between Bitcoin and Gold in real-time. Based on Yves Choueifaty's work (200-day lag, x15 multiplier) and Philippe Herlin (complementary assets). Rolling correlation charts, ratios, and historical divergence analysis.