At present, the price of Bitcoin stands at $58,027.33. In the last 30 days, the price has seen a fall of at least 1.9%. Meanwhile, Gold has hit a new all-time high of 2,518.86 USD/oz. The data reveals a negative correlation between Gold and Bitcoin. Let’s dive deeper for more interesting details!
Bitcoin Bear Market Persists
CryptoQuant’s Bull-Bear Market Cycle indicator shows that the Bitcoin market is currently going through a bearish phase. The MVRV ratio also indicates a similar trend, as the ratio has stayed below its 365-day moving average since August 26.
A CryptoQuant report states that Bitcoin long-term holders are spending their holdings at lower profit margins. The report also mentions that the LTH SOPR ribbons, which track spending patterns, have been trending downwards since late July.
The insights from the report also support the idea that Bitcoin is in a bearish phase and its price is likely to decline further. However, some experts are focusing on bitcoin price predictions to assess whether the market will rebound soon.
Gold Price Historic Market Analysis
At the start of the year, the price of Gold was around $2,043.05 USD/oz. On February 13, it dropped slightly to 1,993.88 USD/oz. On March 10, just days before the BTC price touched an all-time high, the price was at 2,183.70 USD/oz. Immediately after the BTC price reached its yearly peak, on March 16, Gold slightly slipped to 2,156.67 USD/oz. However, between March 24 and April 17, the market witnessed a strong upward momentum, lifting the price from 2,173 USD/oz to 2,391.87 USD/oz.
Since then, the market has maintained its momentum, though it has experienced certain small ups and downs in between. Now, Gold remains at an all-time high. In the last 20 years, Gold has never touched this high.
Bitcoin Price Historical Price Analysis
At the beginning of the year, the price of Bitcoin was at $42,268.89. Between January 23 and March 13, the price saw a strong upward momentum, taking the price to an all-time high of $73,000+. On August 27, the price slipped below the level of $60,000. Currently, the market is struggling to break above this level. The SMA 50 of BTC is nearly $60,111.91. In the last 14-days alone, the market has seen a drop of 2.3%.
Bitcoin and Gold Decouple
The data reveals a negative correlation between Bitcoin and Gold. While Bitcoin has dropped in value, Gold has reached record highs. Is this an indication that investors are switching to safer assets like gold and ditching risky assets like Bitcoin?
In conclusion, if the new trend is an indication of investors choosing Gold over Bitcoin due to risk concerns, it could have a long-term impact on the crypto industry. Thus, it is important to keep an eye on the trend
