When the price of gold reached 2.5 thousand dollars for the first time, the price of Bitcoin fell
Bitcoin (BTC) opened on Wall Street on August 16 as a range-topping BTC price action compared to new gold records.
Analyst: BTC price “talking” increased
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD exploring both ends of the $1,500 trading range during the day.
Avoiding a retest of the $56,000 lows from the previous day, however, Bitcoin failed to impress market watchers.
“The fact that BTC is not in good news probably says more than people want to admit,” Filbfilb, co-founder of trading group DecenTrader, commented on X.
Filbfilb pointed to gold and stocks currently outperforming Bitcoin, with the former posting a new all-time high of $2,500 on the day.
Year-to-date, XAU/USD is up 21% — though it's still 38% lower than Bitcoin.
In his own response, Charles Edwards, founder of quantitative bitcoin and digital asset fund Capriol Investments, struck a more positive tone, calling for “patience,” saying that bitcoin's recovery from early August lows “has lagged behind other asset classes.” He said.
Earlier, Edwards suggested that Bitcoin should eventually follow gold, following historical precedent. It showed that the gap between the movement of gold and bitcoin is about three months.
In 2025, Bitcoin shares correlation will return
Comparing BTC's price action to stocks, Benjamin Cowen, CEO and founder of analytics resource Into Cryptoverse, made a similar comparison to previous market cycles.
RELATED: Bitcoin Rises 4% As Triple ‘Death Cross' Under $50K Triggers Warning
“As a reminder, in 2019, also the year the Fed cut rates, BTC also diverged from the SPX,” he wrote in X's post alongside the S&P 500 chart.
Cowen cited the U.S. Federal Reserve's expected rate hike this year, which markets expect will cut interest rates next month.
Cowen added: “Many people continue to do things like this, which is unprecedented and unbelievable, but the *exact* same thing happened last cycle.”
In subsequent comments, he gave a timeline of 2025 to restore the positive correlation between the two assets.
Earlier, Cointelegraph reported similar dramatic moves in Bitcoin versus Japanese stocks, erasing the record it set two weeks ago.
But long-time bitcoin analyst Tur Demeester said the new drop could easily hit the BTC market.
“To be clear: the blood is not over!” He warned that day.
“A return to $45k is not inconceivable, for example if we see a big sell-off in the stock markets. Make sure you fasten your seatbelt.”
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
