Alarm Bells Are Ringing in Bitcoin: The Rate Followed by the Giants is at the Lowest in 4 Years!

A decline in the copper-gold ratio could herald economic uncertainty and low interest rates for risky assets, including cryptocurrencies.

The ratio of copper to gold, one of the world's most invested products, has fallen to its lowest level since November 2020, signaling decline for risky assets and cryptocurrencies. This rate is calculated by dividing the market price of one pound of copper by the price of one ounce of gold and shows the demand for industrial activities.

Copper is known as "Doctor Copper" because it is deeply connected to the production sector, while gold is considered a safe haven.

According to the latest data, it is stated that the copper-gold ratio, which decreased by more than 8 percent this month, indicates that economic uncertainties are increasing. Traditional market giants like DoubleLine Funds monitor this rate for clues about demand for risky assets.

It may affect interest rates. According to DoubleLine Capital, this rate indicates that interest rates will also decrease. According to Morningstar's predictions, in parallel with the decrease in this rate, the interest rate determined by the US Federal Reserve (FED) may decrease to the range of 4.75%-5% by the end of 2024 and to 3% next year.