Gold prices hit new highs, Bitcoin market plunges into downturn
Recently, the international gold price exceeded the US$2,500 per ounce mark for the first time, becoming the focus of the global market.
Source: TradingView International Gold Price Trends
However, at the same time, the price of Bitcoin unexpectedly plummeted, causing many people to question Bitcoin's status as "digital gold." Bitcoin's price fluctuated around $1,500 over the course of the day, and while it avoided another low of $56,000, it failed to restore market confidence, according to TradingView. (As of writing, the price of Bitcoin is $59,239)
Source: TradingView Bitcoin Price Chart (Daily)
Market analyst Filbfilb said on social platform He emphasized that both gold prices and the stock market are currently performing better than Bitcoin, especially gold prices which hit a record high that day.
Analysts urge patience, Bitcoin may need time to catch up
Although Bitcoin's performance fell short of expectations, Charles Edwards, founder of Capriole Investments, a quantitative Bitcoin and digital asset fund, has a more optimistic attitude. He called on investors to be patient, acknowledging that Bitcoin’s recovery from the overall economic lows of early August has lagged other asset classes. Edwards also noted that Bitcoin should eventually follow the upward trend in gold prices, citing historical precedent that shows there tends to be a lag of about three months in price movements between gold and Bitcoin.
However, it still takes time to verify whether Edwards’ prediction can come true, after all, Bitcoin’s market volatility has always been one of its biggest risks. Nonetheless, he remains convinced that Bitcoin has long-term value as an emerging safe-haven asset, especially as the global economy faces uncertainty.
Source: Charles Edwards Bitcoin price performance is not as good as other assets
Stock market-Bitcoin correlation could recover in 2025
At the same time, Benjamin Cowen, CEO and founder of Into the Cryptoverse, also analyzed Bitcoin’s current price trend. He compared Bitcoin’s performance to the stock market, noting that the correlation between Bitcoin and the S&P 500 also diverged in 2019, when the Federal Reserve was also interest rate cut cycle. Cowen said the situation was not unprecedented and predicted the correlation might not return until 2025.
Source: Benjamin Cowen The correlation between Bitcoin and the S&P 500 also diverged in 2019
He also added that if there is a massive sell-off in the stock market, Bitcoin prices could fall further, even to the $45,000 level. Therefore, investors should remain cautious in the current market environment, fasten their seat belts, and deal with possible risks.
Bitcoin’s future trend sparks heated debate
Against the background of sharp fluctuations in Bitcoin prices, discussions on its future trend continue to heat up in the market. Tuur Demeester, an analyst who has long watched the Bitcoin market, even warned that the current market decline may not be over yet.
He pointed out that the Bitcoin market may suffer another decline, especially if there is a sharp correction in global stock markets.
Overall, Bitcoin’s status as “digital gold” is being tested. As the price of gold climbs and the volatility of the Bitcoin market increases, investors are raising more questions about Bitcoin's safe-haven function. In the future, as uncertainty in the global economy and financial markets increases, it remains to be seen whether Bitcoin can regain its due value positioning.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
