According to data from CryptoQuant, in the current risk-averse environment, investors appear to favor traditional safe-haven assets such as gold over Bitcoin. The correlation between Bitcoin and gold has recently fallen sharply to negative values, with gold prices recently hitting a new high of more than $2,500 per ounce, while Bitcoin has been falling and is now more than 20% below its all-time high of more than $73,000 in March. As investors buy gold and sell Bitcoin, U.S. stocks have performed poorly, with the S&P 500 down 3.6% since August 30. CryptoQuant's Bull-Bear Cycle Indicator has been in a bear market since August 27, when Bitcoin was trading at $62,000. The MVRV ratio (market value to realized value) has also been below the 365-day moving average since August 26, suggesting that prices may adjust further. The MVRV ratio’s drop below its moving average was a precursor to Bitcoin’s 36% drop in May 2021. (CoinDesk)

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