Bitcoin Price Risks Correction Following Gold’s Performance

Bitcoin, despite a 10% increase since January, may face a major correction as gold outperforms with annual gains of 20%. This inverse dynamic between the two assets raises fears of an imminent reversal in the crypto market.

An Unusual Dynamic in the Markets

On January 28, 2025, The Kobeissi Letter highlighted an unusual phenomenon in the financial markets. Despite the US dollar reaching a 52-week high and a 10-year bond yield exceeding 4.80%, gold continues to rise, defying its traditional inverse correlation with the greenback.

The precious metal has also withstood market turbulence, notably the fears related to AI DeepSeek this week. “Gold prices are rising despite the volatility of the S&P 500 and the strength of the dollar,” notes Kobeissi. This trend suggests a renewed interest in gold as a safe haven.

In comparison, Bitcoin has seen a 10% increase since January, half of gold’s gains over the same period. The data from Cointelegraph Markets Pro and TradingView confirms this divergence, hinting at a possible shift of capital towards more traditional assets.

Warning Signals for Bitcoin

Technical analysis reveals a critical threshold for Bitcoin. According to the Northstar account on X, if the Bitcoin/gold ratio falls below 34, the upward trend could be compromised. This level is particularly closely watched since the ratio reached historic highs in December 2024, indicating a risk of correction.

Despite these concerns, some experts, including Michaël van de Poppe, remain optimistic. He believes Bitcoin will eventually follow gold to new highs, a trend previously observed with a lag of several months.

Currently, the BTC/XAU ratio is in a consolidation phase. A break below 34 could signal the end of the bullish cycle, while holding above this threshold would strengthen the positive momentum for a few more weeks or months.

In this context, while gold demonstrates exceptional resilience, Bitcoin is entering a decisive phase, driven by Arizona’s initiative to allocate a portion of its public funds to the asset. Investors must remain attentive to technical signals that could indicate a market reversal.