The ratio of copper to gold serves as a significant macro indicator for economic momentum and investor risk tolerance. Historically, it has demonstrated a notable correlation with bitcoin , according to SuperBitcoinBro.
Copper’s valuation is closely linked to industrial demand and tends to thrive during economic upturns. Conversely, gold acts as a defensive asset, typically shining during times of increased uncertainty and slow growth.
An upward trend in the ratio indicates a risk-on environment, while a downward trend signals risk aversion.
Significant peaks in the ratio occurred in 2013, 2017, and 2021, coinciding with bitcoin price cycle highs. These intervals indicated strong global growth optimism and heightened speculative risk across various assets.
Importantly for bitcoin, the behavior of the ratio following extended declines has been noteworthy. A rebound in the ratio frequently signals significant bitcoin rallies, especially when they coincide with bitcoin halving events.
Bitcoin halvings, which halve the rewards for miners approximately every four years, decrease supply and have historically sparked long-term bull markets.
During the fourth bitcoin halving in April 2024, the copper-to-gold ratio was still on a downward trend. That situation has since changed. The ratio is currently around 0.00136 after hitting a low of approximately 0.00116 in October.
Simultaneously, copper prices have surged beyond $6 per pound, reaching all-time highs, while gold is trading close to $4,455 per ounce, also near its record. Over the last three months, copper has increased by 18%, and gold by 14%.
If the strength of copper reflects rising growth expectations rather than just supply issues, this risk-on signal could encourage a bitcoin rally in 2026.
