Bitcoin Breaches 12-Year Support Line Against Gold – Is The Bull Run Over?
Bitcoin (BTC) is experiencing a downturn, failing to surpass the $84,000 resistance and down over 10% year-to-date, from approximately $94,000 on January 1 to around $84,000. In contrast, gold (XAU) has reached a record high of $3,000 per ounce, rising nearly 13% in the same timeframe. The BTC-to-gold ratio indicates BTC is breaking below a critical support line, which could signal the end of the current crypto bull run if sustained. Capital flows show a stark contrast: US-based gold ETFs have attracted over $6 billion in inflows, while US-based BTC ETFs have seen nearly $1.5 billion in net outflows. Factors contributing to this shift include new trade tariffs, the Federal Reserve's hawkish policy, and a stock market decline. The total crypto market cap has decreased by over $600 billion, now at approximately $2.8 trillion. Despite this, potential positive macroeconomic developments, such as cooling inflation and a weakening US dollar, could benefit BTC. Currently, BTC trades at $84,902, up 3.8% in the past 24 hours.
