Bitcoin Decouples From Gold as Crypto Continues in Bearish Phase

In recent times, the relationship between Bitcoin and Gold appears to have become significantly inverse, as suggested by CryptoQuant. Lately, Gold has been surging to unprecedented highs, exceeding $2,500 per ounce, while Bitcoin has experienced a downturn and is now over 20% below its peak of around $73,000 from March. This shift in preference towards Gold and away from Bitcoin seems to have occurred as the U.S. stock market has been faltering; the S&P 500 has dropped by approximately 3.6% since August 30.

According to CryptoQuant’s Bull-Bear Market Cycle Indicator, the market has been in a ‘bearish phase’ since August 27th, with Bitcoin‘s price being around $62,000 at that time.

According to CryptoQuant, the Market-Value-to-Realized-Value (MVRV) ratio has been lower than its average over the past 365 days since August 26. This could indicate that we might see additional price adjustments in the future, as it previously signaled a 36% price decline, as seen in May 2021.

According to CryptoQuant, a decrease in Bitcoin’s value has coincided with a fall in the U.S. Dollar Index, which is often seen as an indication of increased caution and apprehension across global markets.