Recently, an interesting phenomenon has been observed in the crypto market. Bitcoin valuation metrics are at their historical lows, while the relative valuation of gold has reached a new high since 2011, and the Bitcoin-to-Gold ratio has fallen near the bottom of the power-law curve. These three different indicators all point in the same direction — something that has not happened before.

Using standard deviations for clarity, Bitcoin's current valuation is in a severe undervaluation state (-2σ), while gold is the opposite, significantly overvalued (+2σ). This pattern is quite interestingly opposite to the market situation at the end of 2017.

Looking back at that cycle: Bitcoin was in an overbought state and then entered a long-term bear market; gold was extremely oversold and then began a multi-year rebound. Will history repeat itself? Are these rotation signals about to appear again? Based on the resonance of multiple indicators, a certain market turning point may be brewing.