This plunge accompanied a sharp decline in the ratio’s weekly relative strength index (RSI), a momentum indicator to gauge an asset’s oversold and overbought status.
The BTC/XAU RSI reading came at 20.92, the lowest on record and about 10 points underneath the oversold threshold of 30. In other words, Bitcoin was trading at historic cheap levels when priced in gold terms.
Oversold RSI typically precede bullish reversal. However, in Bitcoin’s case, such a recovery seems far for now.
That is because of AI disruption fears, which have deepened the risk-off mood, boosting gold and pressuring Bitcoin.
A Citrini Research stress test further said an “AI exceeds expectations” shock could drive unemployment to 10% and pull the S&P 500 ~38% from a late-2026 8,000 peak, hitting payments, software and private credit.
