Gold Hits Record High, Bitcoin Dips: Crypto Bull Run in Danger?

Published by

Vignesh S G

September 12, 2024

Bitcoin’s price currently stands at $58,027.33, marking a 1.9% drop over the past month. In contrast, Gold has soared to a record high of $2,518.86 per ounce. This data highlights an intriguing inverse relationship between Gold and Bitcoin.

Let’s explore this dynamic in more detail!

Bitcoin Faces a Bearish Phase

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.

According to a CryptoQuant report, long-term Bitcoin holders are spending their holdings at lower profit margins. The LTH SOPR ribbons, which track these spending patterns, have been trending downward since late July.

Experts Weigh In

These insights reinforce the view that Bitcoin might see further declines. However, some experts are analyzing Bitcoin price predictions to gauge whether a market rebound is on the horizon.

Analyzing the Gold Price Hike

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 slipped slightly 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, Gold has continued to rise, hitting an all-time high that hasn’t been seen in the past 20 years.

Bitcoin Price Historical Price Analysis

Bitcoin began the year at $42,268.89. It saw significant gains between January 23 and March 13, reaching an all-time high of over $73,000. Since August 27, Bitcoin’s price has dropped below $60,000, and it is currently struggling to break past this level. The 50-day SMA for Bitcoin is around $60,111.91, and the market has seen a 2.3% drop in the last 14 days.

Investor Preferences Shifting?

The negative correlation between Bitcoin and Gold is evident. While Bitcoin’s value falls, Gold continues to reach new highs. This raises the question: Are investors moving from risky assets like Bitcoin to safer ones like Gold?

If this trend indicates a preference for Gold over Bitcoin due to risk concerns, it could impact the crypto industry long-term. Keeping an eye on these shifts will be important for understanding future market trends.

The battle between Bitcoin and Gold is far from over. Will Bitcoin be able to regain its momentum, or will Gold’s dominance continue to rise?

Vignesh S G

Vignesh is a young journalist with a decade of experience. A proud alumnus of IIJNM, Bengaluru, he spent six years as a Sub-Editor for a leading business magazine, published from Kerala. His interest in futuristic technologies took him to a US-based software company specialising in Web3, Blockchain and AI. This stint inspired him to view the future of journalism through the lens of next generation technologies. Now, he covers the crypto scene for Coinpedia, uncovering a vibrant new world where technology and journalism converge.