BTC/XAU Ratio Breakout Could Spark $90k Liquidity Shift

The Bitcoin price has been consolidating below $90k, but a catalyst may be in the works to push it higher. Rising treasury yields and a plummeting rate hike probability have investors still hedging into safe havens, keeping liquidity cautious. However, the BTC/XAU ratio is pushing higher and is ready to break above a significant level, which could provide the liquidity required for a breakout. Jurrien Timmer, Director of Global Macro at Fidelity, shares this view, noting that Bitcoin's macro hedge appeal puts $90k back in focus.

The BTC/XAU ratio has ended Q3 up 37%+, making it the best quarterly gain since the Q4 2024 election-driven rally. This shift in preference from gold to Bitcoin has been driven by the asset's status as a macro-hedge. Timmer highlights this shift, stating, 'I continue to like exposure to both gold and Bitcoin, but especially Bitcoin looks interesting to me at these levels, where we broke out above $80k, targeting $100k.'

Bitcoin's correlation with Treasury yields is lower than that of gold, making it a useful diversifier if a new four-year cycle is starting to emerge. As the macro environment remains volatile, Bitcoin's strength against gold may well enable another $90k leap.