Bitcoin-Silver Ratio Approaches FTX Capitulation Levels
As historic bull markets unfold, investors often grapple with the challenge of identifying market peaks. This behavior is amplified during periods of heightened volatility, particularly evident in the current silver market.
Bitcoin-Silver Ratio Analysis
Currently, the bitcoin to silver ratio is approximately 780. This figure is notably lower than the 2017 peak when Bitcoin reached $20,000 and is approaching levels seen in November 2022, when Bitcoin bottomed at around $15,500, causing the ratio to drop to 700. This shift indicates that silver might be becoming more vulnerable relative to Bitcoin.
Recent Trends in Silver Prices
Silver prices have escalated nearly 300% in the past year. However, Monday’s market experienced turbulence as silver prices plummeted almost 15% following an initial rise. The price briefly hit near $117 per ounce before settling at around $112.
Historical Patterns
Notable historical peaks in silver prices have typically occurred during the early months of the year. Past instances include:
- February 1974
- January 1980 – Marked a peak at $47
- February 1983
- May 1987
- February 1998
- April 2004
- May 2006
- March 2008
- April 2011 – A peak at $50
These patterns suggest caution as silver may have reached its cyclical peak or even a blow-off top. Investors are advised to monitor these developments closely.
