Bitcoin finally manages to gain during the decline against gold

After six consecutive weeks losing to gold, Bitcoin turned the game around. There have now been two such periods, and just this week BTC rose more than 4% relative to the precious metal. It’s an interesting movement to watch.

What draws attention is that both are falling at the same time. Bitcoin went from $76 thousand to below $70 thousand — a drop of about 8.7%. Gold didn’t do better, losing 8.5% in the same period and now hovering around $4,616 per ounce, far from the $5 thousand investors were watching. Two consecutive weeks of decline for gold, heading toward a third. Worst performance of this kind since November.

And then the classic debate arises: when gold crashes, does the money go into Bitcoin? Benjamin Cowen, from Into The Cryptoverse, says no. He’s been saying that since January, when gold was still rising and crypto folks were betting on rotation. He didn’t believe it back then, and he still doesn’t believe it now.

His logic is based on something that has already happened in the crypto market. When Bitcoin spikes, everyone expects capital to leave BTC and go into smaller altcoins — the so-called altcoin season. According to Cowen, that never really happened. And he sees the same thing happening with this gold-to-Bitcoin story.

But not everyone agrees. There are people in the market who have long argued that metals and crypto serve different audiences, so a drop in one naturally sends money to the other. So far, the data doesn’t confirm that.

What’s interesting is to look at the BTC/Gold ratio. Even with both falling in dollars, Bitcoin has been regaining ground against gold after hitting a bottom of 12 ounces of gold per BTC at the beginning of the month. Now it’s around 15 ounces. Still well below the Bollinger middle band ( at 18) and far from the upper band ( at 26), but the direction has changed. It may just be a technical correction, but it’s worth keeping an eye on.