CryptoBitcoinBitcoin Loses Ground as Investors Flock to Gold Amid Risk-Averse Climate

Bitcoin Loses Ground as Investors Flock to Gold Amid Risk-Averse Climate

In the current risk-averse environment, investors are increasingly favoring traditional safe-haven assets like gold over Bitcoin (BTC). According to data from CryptoQuant, the correlation between Bitcoin and gold has turned significantly negative. While gold recently hit record highs above $2,500 per ounce, Bitcoin has struggled, now sitting more than 20% below its all-time high of $73,000 from March.

This shift comes as U.S. stocks have faltered, with the S&P 500 declining 3.6% since August 30. Bitcoin’s weakness is reflected in CryptoQuant’s Bull-Bear Market Cycle Indicator, which has been in a “BEAR” phase since August 27, when BTC was trading at $62,000.

Additionally, the market-value-to-realized-value (MVRV) ratio has remained below its 365-day moving average since August 26, signaling the potential for further price corrections. The last time the MVRV ratio dropped below this threshold, Bitcoin saw a 36% drop in May 2021.

The drop in Bitcoin’s price has also coincided with a decline in the U.S. dollar index, another sign of growing risk aversion and market uncertainty.

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Andrew
Andrew
Self-taught investor with over 5 years of financial trading experience Author of numerous articles for hedge funds with over $5 billion in cumulative AUM and Worked with several global financial institutions. After finding success using his financial acumen to build an investment portfolio, Andrew began writing and editing articles about the cryptocurrency space for sites such as chaincryptocoins.com, ensuring readers were kept up to date on hot topics such as Bitcoin and The latest news on digital currencies and Ethereum.

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