The price of bitcoin (BTC) has entered a bearish phase, stemming from the asset\u2019s constant decline and range-bound movement. As a result, the largest cryptocurrency has decoupled from gold.<\/p>\n
According to CryptoQuant analysts, bitcoin\u2019s price has been declining<\/a> while the yellow metal has rallied to new record highs, causing their correlation to turn negative.<\/p>\n The negative correlation between bitcoin and gold reflects a risk-averse environment where investors prefer traditional safe-haven assets over speculative ones like cryptocurrencies. While BTC is decoupling from the metal, the crypto asset has been moving<\/a> in the same direction with lower United States stock markets. Analysts said this is a sign that macro headwinds are affecting BTC.<\/p>\n Since early July, the Nasdaq 100 Composite index has fallen 10%, and BTC has plummeted 16%, with their correlation increasing from -0.85 to 0.39. CryptoQuant repealed that this positive correlation between bitcoin and the Nasdaq index is normal; hence, BTC would be negatively affected by a decline in the stock market.<\/p>\n Bitcoin is also moving in the same direction as the U.S. dollar, which has weakened against other currencies. According to CryptoQuant, a weakening dollar and a declining BTC could indicate broader financial stress or risk aversion when global markets face uncertainty. This causes investors to flee from the USD and riskier assets.<\/p>\n Bitcoin\u2019s descent has caused its valuation metrics to turn bearish. CryptoQuant\u2019s Bull-Bear Market Cycle Indicator entered the bear phase on August 27, when BTC hovered around $62,000. The asset was worth<\/a> $57,880 at the time of writing. As the indicator stays in this phase, analysts are not expecting a significant rally, and the market faces risks of further correction.<\/p>\n Moreover, bitcoin\u2019s current condition has been seen on two separate occasions in the past. The asset witnessed 30% corrections in March 2020 and May 2021, while the Bull-Bear Market Cycle Indicator remained in the bear phase.<\/p>\n In addition, bitcoin\u2019s Market Value to Realized Value (MVRV) ratio has been below its 365-day moving average since August 26, signaling a risk of further price correction.<\/p>\n Meanwhile, bitcoin\u2019s bearish signs can be seen in the asset\u2019s long-term holders\u2019 spending<\/a> at lower profit margins. This is evidence of a lack of fresh demand for BTC.<\/p>\n The post Bitcoin\u2019s Correlation With Gold Turns Negative as Market Slips Into Bear Phase: CryptoQuant<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" The price of bitcoin (BTC) has entered a bearish phase, stemming from the asset\u2019s constant decline and range-bound movement. As a result, the largest cryptocurrency has decoupled from gold. According to CryptoQuant analysts, bitcoin\u2019s price has been declining while the yellow metal has rallied to new record highs, causing their correlation to turn negative. Bitcoin […]<\/p>\n","protected":false},"author":0,"featured_media":6700,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-6699","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/6699"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6699"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/6699\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/6700"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6699"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6699"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6699"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Bitcoin Decouples From Gold<\/h2>\n
Further Correction Incoming?<\/h2>\n