Bitcoin Breaches 12-Year Support Line Against Gold – Is The Bull Run Over?
15 Março 2025 - 10:00AM
NEWSBTC
As Bitcoin (BTC) struggles amid the latest crypto market pullback –
failing to decisively break past the $84,000 resistance – gold
(XAU) continues its impressive rally, soaring to a record high of
$3,000 per ounce on March 14. Bitcoin Gets Outshined By Gold 2025
has started on a shaky note for the world’s largest cryptocurrency.
BTC is down over 10% year-to-date (YTD), falling from approximately
$94,000 on January 1 to around $84,000 at the time of writing. On
the flip side, gold has surged nearly 13% in the same period.
Related Reading: Bitcoin Needs Weekly Close Above This Level To
Confirm Market Bottom, Analyst Says Market analyst Northstar shared
the following chart on X yesterday, illustrating the BTC-to-gold
ratio over the past 12 years. According to the chart, BTC is
beginning to break below a critical support line that has held
strong for more than a decade. If Bitcoin sustains price action
below this support line for several weeks or months, it could
signal the end of the current crypto bull run. BTC’s
underperformance against gold is also evident in the contrasting
capital flows into BTC and gold exchange-traded funds (ETFs).
According to data from the World Gold Council, US-based spot gold
ETFs have attracted inflows exceeding $6 billion YTD. Globally,
spot gold ETFs have seen more than $23 billion in inflows.
Meanwhile, data from SoSoValue indicates that US-based spot BTC
ETFs have experienced nearly $1.5 billion in net outflows YTD. This
sharp contrast in capital movement reflects a shift in investor
strategy from risk-on to risk-off assets. Several factors may
explain investors’ growing aversion to risk-on assets, including US
President Donald Trump’s new trade tariffs, the US Federal
Reserve’s (Fed) hawkish monetary policy, and the recent stock
market rout. Is The Crypto Bull Run Over? BTC’s underperformance
relative to gold casts doubt on the longevity of the current crypto
bull market. The total crypto market cap has shed over $600 billion
since the start of the year, now standing at approximately $2.8
trillion. Related Reading: Bitcoin To Bottom Around $70,000? Arthur
Hayes Says Correction ‘Very Normal’ In A Bull Market Renowned gold
advocate Peter Schiff argues that BTC has already been in a bear
market for the past three years. In an X post, Schiff stated: One
Bitcoin now buys 27.7 ounces of gold. At its peak in 2021, one
Bitcoin bought 36.3 ounces of gold. That means that in terms of
gold, which is real money, the price of Bitcoin has fallen by 24%.
So Bitcoin has been in a stealth bear market for the past three and
a half years. That said, positive macroeconomic developments could
still turn the tide in BTC’s favor. For example, US inflation
appears to be cooling, which may pressure the Fed to pivot toward
quantitative easing and boost market liquidity – a potential
boon for risk-on assets. Likewise, a breakdown in the US dollar
index could reignite optimism for assets like stocks and
cryptocurrencies. At press time, BTC trades at $84,902, up 3.8% in
the past 24 hours. Featured image from Unsplash, charts from X and
TradingView.com
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