The copper-to-gold ratio is widely viewed as a macro indicator of economic momentum and investor risk appetite. Historically, it has had a significant relationship with Bitcoin According to SuperBitcoinBro.
Copper is closely tied to industrial demand and tends to perform well during periods of economic expansion. In contrast, gold is a defensive asset that typically outperforms during periods of greater uncertainty and slower growth.
When the ratio between the two rises, it indicates a risk-on environment, while a falling ratio indicates risk aversion.
Major spikes in this ratio in 2013, 2017, and 2021 coincide with cycle highs in Bitcoin prices. These periods reflect strong global growth expectations and rising speculative risks in assets.
More important for Bitcoin, however, is how the ratio performs after a prolonged decline. Reversals in this ratio often precede significant Bitcoin gains, especially when they coincide with the Bitcoin halving cycle.
Bitcoin’s halving, which occurs approximately every four years, reduces payments to miners by 50% and causes supply constraints. Historically, they have been the catalyst for secular bull markets.
In April 2024, during the fourth Bitcoin halving, the copper-to-gold ratio was still declining. The dynamic has since changed. After bottoming out around 0.00116 in October, the ratio currently sits around 0.00136.
Meanwhile, copper prices topped an all-time high of $6 a pound, while gold traded near $4,455 an ounce, also close to an all-time high. Over the past three months, copper has gained 18% and gold has gained 14%.
If copper’s strength reflects improved growth expectations rather than pure supply constraints, the resulting signaling risk could support Bitcoin’s rise in 2026.
