As of today, the price of Bitcoin stands at $58,027.33, reflecting a decline of at least 1.9% over the past 30 days. In contrast, Gold has surged to a new all-time high of 2,518.86 USD/oz. The data indicates a negative correlation between Gold and Bitcoin. Let’s explore the details more closely!
Bitcoin Bear Market Persists
According to CryptoQuant’s Bull-Bear Market Cycle indicator, Bitcoin is currently experiencing a bearish phase. The MVRV (Market Value to Realized Value) ratio also supports this trend, remaining below its 365-day moving average since August 26. A report from CryptoQuant highlights that long-term Bitcoin holders are liquidating their assets at lower profit margins.
The report further notes that the LTH SOPR (Long-Term Holder Spent Output Profit Ratio) ribbons, which monitor spending patterns, have been declining since late July. These insights suggest that Bitcoin’s bearish phase may persist, with prices potentially declining further. However, some experts are focusing on Bitcoin price predictions to determine if a market rebound is on the horizon.
Gold Price Historic Market Analysis
At the beginning of the year, Gold was priced at approximately $2,043.05 USD/oz. By February 13, it had dipped slightly to $1,993.88 USD/oz. On March 10, just days before Bitcoin reached an all-time high, Gold’s price stood at $2,183.70 USD/oz. Following Bitcoin’s peak on March 16, Gold’s price slightly decreased to $2,156.67 USD/oz.
However, from March 24 to April 17, the market observed a strong upward momentum, propelling Gold’s price from $2,173 USD/oz to $2,391.87 USD/oz. Since then, the market has maintained its momentum, despite minor fluctuations. Currently, Gold remains at an all-time high, a level it hasn’t reached in the past 20 years.
Bitcoin Price Historical Price Analysis
At the start of the year, Bitcoin was valued at $42,268.89. Between January 23 and March 13, Bitcoin experienced significant upward momentum, pushing its price to an all-time high of over $73,000. However, by August 27, the price had fallen below the $60,000 mark. Presently, the market is striving to break above this level, with the 50-day Simple Moving Average (SMA) for Bitcoin hovering around $60,111.91. Over the past 14 days alone, Bitcoin’s market has witnessed a 2.3% decline.
Bitcoin and Gold Decouple
The data reveals a negative correlation between Bitcoin and Gold. While Bitcoin’s value has decreased, Gold has soared to record highs. This trend might indicate that investors are shifting towards safer assets like Gold and moving away from riskier investments like Bitcoin.
In conclusion, if this trend indicates a preference for Gold over Bitcoin due to perceived risks, it could have long-term implications for the cryptocurrency industry. It is crucial to monitor this trend closely.
