Can Gold And Silver Prices Predict Bitcoin’s Next Move?

Although some Bitcoin bulls refer to BTC as digital gold, physical precious metals may be a good way to predict Bitcoin’s future price movements.

One Bitcoin trader brought up the BTC/Gold Mayer Multiple when explaining their bullishness toward crypto.

The Mayer Multiple’s History

The multiple compares the Bitcoin to gold ratio against its 200-day moving average, and advocates of this indicator believe Bitcoin is undervalued if it has a Mayer Multiple below 1.

The X user said that the ratio has only been this low during Bitcoin crash periods, suggesting a buy-the-dip opportunity.

However, before investors place trust in the Mayer Multiple, it’s good to see how gold and Bitcoin prices correlate. We will also discuss how silver prices can predict Bitcoin’s next move.

The centerpiece of this opportunity is a bullish indicator from the BTC/Gold Mayer Multiple, so it’s good to know how it came to be.

Entrepreneur and monetary scientist Trace Mayer created the multiple to track Bitcoin’s historical price movements to discover trends and buying opportunities.

It divides Bitcoin’s current price by its 200-day moving average.

For instance, if Bitcoin trades at $120,000 right now and has a 200-day moving average price of $100,000, it has a 1.2 Mayer Multiple.

A ratio above 2.4 usually indicates that Bitcoin is overbought, while a 0.8 Mayer Multiple tends to suggest an attractive buying opportunity.

You can add more complexity to the Mayer Multiple by comparing the ratio of two assets, such as Bitcoin and gold, as the X user did.

Like other indicators, the Mayer Multiple relies on lagging indicators and historical patterns to predict future price movements.

How Gold and Silver Prices Affect Bitcoin

When gold or silver prices rise faster than Bitcoin for an extended period, it often signals that Bitcoin could be gearing up for a rebound.

This relationship is captured by the BTC/Gold Mayer Multiple and BTC/Silver Mayer Multiple. Both of these indicators measure Bitcoin’s price performance against its 200-day moving average relative to these metals.

A Mayer Multiple below 1 means Bitcoin is undervalued compared to gold or silver. Historically, these moments have marked strong buying opportunities.

Figure 1: BTC/Gold Mayer Multiple over the past five years. Values below 1 (dashed line) have historically signaled major Bitcoin accumulation phases.

For example:

• The BTC/Gold Mayer Multiple dropped to 0.70 in November 2022 and 0.85 in March 2020—both times near Bitcoin’s market bottom. In the months that followed, Bitcoin’s price more than doubled.
• The BTC/Silver Mayer Multiple fell below 1 in September 2020 when Bitcoin was around $10,900, before it surged to nearly $60,000 by April 2021. It again stayed below 1 from late 2022 to early 2023, and Bitcoin almost doubled that year.

Recently, the BTC/Gold ratio touched 0.84 and the BTC/Silver ratio briefly fell below 1 in late October. Even minor dips below this threshold—such as 0.98 in past cycles—have proven to be strong entry points for long-term investors.

In short, when the ratio between Bitcoin and precious metals dips below 1, it has historically signaled a “buy-the-dip” window before a major rally.

Figure 2: BTC/Silver Mayer Multiple showing similar undervaluation signals. Each dip below 1 (dashed line) preceded major Bitcoin rallies.

What Gold and Silver Prices Mean for Bitcoin

Both the gold and silver Mayer Multiples now suggest a bullish outlook for Bitcoin. The idea is simple: when precious metals outperform Bitcoin for too long, Bitcoin tends to catch up — and outperform them dramatically afterward.

So far this year, gold is up 54%, silver is up 63%, and Bitcoin is up 21%. If history repeats, Bitcoin could soon close that gap and deliver outsized returns in the months ahead.

Over the long term, Bitcoin’s performance speaks for itself: it’s up over 700% in the past five years, while gold and silver have roughly doubled.

Beyond the Mayer Multiple signal, the macro picture also supports Bitcoin’s upside — lower interest rates, pro-crypto policies, and rising institutional investment are creating the right conditions for Bitcoin to outperform once again.

The post Can Gold And Silver Prices Predict Bitcoin’s Next Move? appeared first on BeInCrypto.