Bitcoin Bounces Back Against Gold Amid Weakening Dollar

The US dollar index has dropped to 98.75, making gold and Bitcoin cheaper for foreign buyers.

This weaker dollar offers support to both assets, but strong inflation data may push up US Treasury yields and pressure them further.

However, the growing use of cryptocurrencies by Iran to bypass sanctions highlights the value of Bitcoin as a borderless asset.

The weekly chart for the Bitcoin-to-gold ratio shows that it has bounced from 13 to about 18, indicating one Bitcoin is equal to approximately 18 ounces of gold.

This bounce follows a similar rounded configuration in 2022 and 2023, where the ratio saw a massive spike. The current strength suggests immediate resistance at 21, with a break above further indicating Bitcoin's outperformance.