Bitcoin Stumbles as Gold Skyrockets: Re-accumulation Phase Predicted Amid Market Fluctuations
Summary:
Bitcoin's value falls towards $69,000, underperforming against gold. Analysts attribute the dip to a decreased outflow from the Grayscale Bitcoin Trust and variances in Bitcoin spot premiums on key exchanges. Combined with the falling U.S. equity market, experts express concern over the abnormal gold price rise, which contrasts with the broader macroeconomic environment. Bitcoin appears to be in a re-accumulation phase, with upcoming block subsidy halving expected to cause volatility, but warn that this phase could last up to five months.
Bitcoin's value headed towards $69,000 following the market opening on Wall Street on 12th April, with the cryptocurrency underperforming compared to gold. Information collated from Cointelegraph Markets Pro and TradingView showed an unimpressive trajectory for the BTC/USD pair as the week drew to a close. With a decline in outflows from the Grayscale Bitcoin Trust (GBTC), Bitcoin's market mood appears far from optimistic, with liquidity falling below $70,000.
J. A. Maartunn of CryptoQuant attributed the dip to Coinbase, blaming a Bitcoin price difference compared to Binance. Maartunn's opinion referred to the variable Bitcoin spot premiums on key exchanges. As such, the gains from risk-assets were reserved to gold, which achieved record-breaking highs of $2,431 per ounce.
U.S. equities, along with Bitcoin, were observed to fall, with the S&P 500 and Nasdaq 100 indices declining by roughly 1% at the time the report was compiled. The rising price of gold, which appears as an anomaly, has been a source of concern to some analysts, including The Kobeissi Letter. They question whether the broader macroeconomic environment may be actually driving gold prices down.
Currently, Bitcoin is experiencing a re-accumulation phase, according to trader and analyst Rekt Capital, with a potential source of volatility being the anticipated block subsidy halving. He also pointed out that while Bitcoin has typically broken out from its range several weeks after the halving, the re-accumulation stage could extend to five months due to investor impatience and disappointment over less-than-stellar returns on their Bitcoin investments post-halving.
Please bear in mind that this report does not constitute investment advice or recommendations. Every investment and trading move comes with inherent risks, and readers should do their own due diligence before making any decisions.
Published At
4/12/2024 6:47:11 PM
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