Bitcoin (BTC) hit its lowest undervaluation against gold (XAU) on Friday, hinting at a potential shift of capital from gold to crypto in 2026. The BTC–XAU ratio Z-score dipped below -2, indicating Bitcoin was trading significantly below its historical norm compared to gold. Analysts predict a bullish outlook for BTC in 2026.

Past cycles show that when BTC/XAU ratio drops towards the -2 standard deviation zone, major Bitcoin price rallies follow. For example, in November 2022, a similar signal preceded a 150% BTC surge over the next year. Historical data also suggests that Bitcoin’s significant price expansions often coincide with gold bull markets, indicating potential gains for BTC in 2026.

The Z-score has accurately predicted Bitcoin’s macro tops and bottoms in the past. When Bitcoin was overbought in 2017 and gold was oversold, Bitcoin entered a bear market while gold began a rally to new all-time highs. The current discount of Bitcoin compared to gold points towards a positive price outlook for BTC in 2026, with projections of $200,000-$300,000 by year-end.

Read more at Cointelegraph: What Does It Mean for BTC Price?