According to CoinDesk, in the current risk-averse environment, investors seem to prefer traditional safe-haven assets to Bitcoin (BTC). Data from CryptoQuant shows that the correlation between Bitcoin and gold has turned sharply negative recently, with gold recently hitting new highs of over $2,500 an ounce, while Bitcoin is in a downward trend and is currently on par with its all-time high set in March (73,000 USD) has fallen by more than 20% compared to the previous year.
CryptoQuant’s Bull and Bear Market Cycle Indicator has been in a bear phase since August 27, when Bitcoin was trading at $62,000.
Additionally, the market value to realized value ratio (MVRV) has also been below its 365-day moving average since August 26, suggesting further price corrections may be in store. CryptoQuant noted that the MVRV ratio’s fall below the moving average was a precursor to Bitcoin’s 36% price drop in May 2021.
The decline in Bitcoin prices was also accompanied by a decline in the U.S. Dollar Index, another indicator of risk aversion and uncertainty in the market.
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