A prominent cryptocurrency analyst is advising investors to reconsider the traditional trade of gold for Bitcoin, asserting that the current market indicators represent a unique buying opportunity.
Related Reading
According to CryptoQuant contributor Joao Wedson, a cluster of bottom signals in the BTC/Gold ratio is emerging, which could signify a pivotal shift in the relationship between these two assets.
Uncommon Signals Indicate Bitcoin’s Potential
Wedson’s analysis features two indicators — one colored blue and the other green — aligned with a defined oscillator that he claims is at a low point. He indicates that the blue tag signifies a low in the BTC/Gold ratio, while the green tag highlights instances when both metrics simultaneously hit lows.
Historically, such occurrences have often coincided with significant declines in Bitcoin and notable fluctuations in market sentiment. Wedson describes the present situation as a “historic opportunity” and encourages investors to “trade gold for Bitcoin.”
Historic Opportunity: Trade Gold for Bitcoin. 🟡⮕₿
Bottom signals in the BTC/Gold ratio are exceedingly rare and typically surface during periods of high volatility and significant BTC downturns.
We are precisely at that juncture now.
The blue signal indicates the current bottom, revealed… pic.twitter.com/cWx2YGxd3t— Joao Wedson (@joao_wedson) October 18, 2025
Arthur Hayes, former CEO of BitMEX, shares a similar perspective: “We’re precisely at that juncture,” he remarked, describing the current setup as one of the most compelling in recent years. Both analysts emphasize the importance of closely examining this moment.
Bitcoin Positioned in a Deep Value Zone
Other analysts observe that Bitcoin is trading two standard deviations below its optimal range. Such a reading has historically coincided with accumulation phases rather than market peaks.
Data from CoinMarketCap indicates that BTC was trading around $107,400 at the time of writing, with an increase of 0.45% over the previous 24 hours. Year-to-date gains are noted at 15%, while Bitcoin has risen nearly 55% in the past year.
These metrics suggest that the cryptocurrency has already experienced significant movement this year, yet certain indicators still point to levels that are comparatively low.
Potential Institutional Changes on the Horizon
Wedson specifically urged institutional investors, who have been accumulating gold, to reassess their allocations. The BTC/Gold ratio has long been recognized as a measure of confidence between these two value stores.
When this ratio reaches a low point, historical patterns suggest that Bitcoin often quickly recovers, and in some instances, reaches new highs within a few months. This trend is linked to the signal he identified.
Analysts have used strong language; the oscillator was described as “effectively yelling: time to sell gold and buy Bitcoin,” emphasizing how compelling this signal appears to its proponents.
Related Reading
Retail Investors Face Billions in Losses
While the ratio narrative suggests potential upside, separate reports highlight a different risk for average investors. Research from 10X Research indicates that retail buyers lost approximately $17 billion after investing in public Bitcoin treasury firms that traded at premiums.
Firms such as MicroStrategy (now Strategy) and Metaplanet issued shares and leveraged the funds to purchase Bitcoin; however, the equity premiums fell as Bitcoin’s momentum waned.
The report further noted that investors overpaid by around $20 billion due to inflated equity premiums, leaving many with losses while insiders and executives capitalized earlier in the market run.
Featured image from Unsplash, chart from TradingView
