BitcoinBTCThe. () currency fell into the deepest devaluation of gold against the dollar (XAU) last Friday. This rekindled expectations that capital will be shifted away from precious metals to cryptocurrency markets again in 2026.
Takeaways from the conference:
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Bitcoin has a new record low value compared to gold. This is historically a key level for BTC.
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The price of BTC in 2026 is expected to be bullish, based on the gold-led cycles that have occurred previously.
Bitcoin “massively outperform gold” In 2026
The undervalued reading came from the BTC–XAU ratio’s Z-score, a metric that measures how far the current ratio deviates from its long-term average.
A reading below −2 indicated that Bitcoin was trading more than two standard deviations below its historical norm compared to gold, which is extremely rare. This was the first instance in which BTC had entered the lowest range of the model.
Historically, moves in the BTC/XAU ratio toward the −2 standard deviation zone preceded extended periods of Bitcoin outperforming gold, as shown in the Power-Law bands graph below.
“Everything points to Bitcoin massively outperforming Gold over the coming months,” said Julius is the analyst that conceptualized BTC/Gold Power-Law Bands and Z-score oscillator
What will the gold price rally signify for BTC prices?
In the past, the Z-score’s dips toward the −2 standard deviation zone marked major Bitcoin bottoms.
In November 2022 for instance, a BTC/XAU price undervaluation led to a BTC rally of roughly 150% in the year following.
Bitcoin also rose over 1,170% in a single year following the appearance of this signal, which was March 2020.
Julius says that the Z-score accurately predicted Bitcoin’s macrotops.
“At the end of 2017, Bitcoin was extremely overbought, while Gold was oversold,” He wrote Additions to a Jan. 3 X-post:
“Shortly after, Bitcoin entered a bear market, and Gold began a multi-year rally toward new ATHs.”
The historical evidence suggests that Bitcoin’s strongest price expansions tend to follow gold bull markets.
BTC started its parabolic phases after gold moved above its long term trend. This lag in previous cycles ranged between two months and over a full year. After that, BTC’s biggest percentage gains were achieved.
Related: Bitcoin-gold correlation signals at least 50% BTC price gains by March
Bitcoins’ discount against gold is therefore suggested as a bullish price outlook for BTC in 2026If the historic pattern is valid, then.
Several analysts are projected BTC would reach $200,000–$300,000 By the end of this year.
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Source: cointelegraph.com
