Bitcoin violates the 12 -year support line against gold

by Barry Solano
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While Bitcoin (BTC) is struggling in the middle of the last decline in the cryptography market – not decisively exceeding the resistance of $ 84,000 – Gold (XAU) continues its impressive rally, reaching a record summit of $ 3,000 per ounce on March 14.

Bitcoin is surpassed by gold

2025 started on a trembling note for the largest cryptocurrency in the world. The BTC is down more than 10% of the year up to date (YTD), from around $ 94,000 on January 1 to around $ 84,000 at the time of the editorial staff. On the other hand, gold jumped almost 13% during the same period.

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Northstar market analyst common The following table on X yesterday, illustrating the BTC / Gold ratio in the past 12 years. According to the graph, BTC begins to break below a critical support line which is strong for more than a decade.

gold
Source: Northstar on x

If Bitcoin supports the action of prices below this support line for several weeks or months, it could point out the end of the current crypto bull race. BTC’s underperformance against gold is also obvious in contrasting capital flows in the funds negotiated in BTC and in exchange for gold (ETF).

According to data From the Global Gold Council, the FNB Spot Gold, based in the United States, attracted entries exceeding $ 6 billion YTD. Globally, FNB Spot Gold have seen more than $ 23 billion in entries.

In the meantime, data De Sosovalue indicates that the FNB BTC based on the United States experienced nearly $ 1.5 billion in NetD NetD outputs. This net contrast in the capital movement reflects a transition from the investor strategy of risk to risky assets.

Several factors can explain the growing investors’ aversion to risky assets, including the new trade rates of US President Donald Trump, the Hawkish monetary policy of the American Federal Reserve (Fed) and the rout of the recent stock market.

Is the crypto bull crushed?

The sub-performance of the BTC compared to the golden flows doubts the longevity of the Haussier market of current cryptography. The total market capitalization of cryptography has lost more than $ 600 billion since the start of the year, now at around 2.8 billions of dollars.

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The famous gold defender Peter Schiff argues that the BTC has already been on the bear market for three years. In a post X, Schiff declared::

A Bitcoin is now buying 27.7 ounces of gold. At its peak in 2021, a bitcoin bought 36.3 ounces of gold. This means that in terms of gold, which is real money, the price of bitcoin has dropped by 24%. Bitcoin has therefore been on a furtive bear market for three and a half years.

That said, positive macroeconomic developments could always turn the trend in favor of the BTC. For example, American inflation appears To cool, which can put pressure on the Fed to rotate towards a quantitative relaxation and stimulate the liquidity of the market – a potential windfall for risky assets.

Likewise, a breakdown in the US dollar index could rekindle optimism For assets such as actions and cryptocurrencies. At the time of the press, BTC is negotiated at $ 84,902, up 3.8% in the last 24 hours.

bitcoin
BTC is traded at $ 84,902 on the daily graphic | Source: BTCUSDT on tradingView.com

Star image of Unplash, X graphics and tradingView.com

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