Chart of the Week The Bitcoin/Gold ratio continues to grind lower. After peaking above 40 in 2025, the ratio has declined sharply and currently sits near 15.9. Recent price action shows a modest bounce, but the broader downtrend remains intact. Bitcoin has borne the brunt of fading Western liquidity momentum, while gold has shown relatively greater resilience. This divergence is becoming one of the cleaner diagnostics in the current regime. Bitcoin remains more tightly linked to the rate of change in Western liquidity conditions. Gold is increasingly reflecting Chinese liquidity dynamics and the broader defensive rotation underway. The ratio captures that difference in transmission. In an environment where global liquidity has flatlined and the Shadow Monetary Base has turned more negative, the relative performance of these two monetary assets is more informative than the headline liquidity level itself. Bitcoin’s recalibration is consistent with its higher beta to Western rate-of-change conditions. Gold’s relative strength is consistent with its role as a hybrid monetary hedge and a partial barometer of Chinese conditions. The chart does not tell us whether the ratio will continue lower or stabilise. It does confirm that the two assets are responding to different parts of the liquidity system right now. Watch the ratio for signs of either a sustained reclaim higher (Bitcoin regaining relative strength) or further compression (gold continuing to outperform). That relative signal is currently one of the clearer reads available.