Is Gold’s Decline the Secret Boost Bitcoin Needs for a Major Comeback?

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<a href="https://investment-policy.com/gold">Gold</a> Loses Momentum: Why This Could be Good News for <a href="https://thbusd.com/btc-usd/">Bitcoin</a> (<a href="https://cnyeur.com/btc-usd/">BTC</a>)?

I’ve noticed gold and other precious metals have been dropping in price lately, and a lot of analysts think that’s actually good news for Bitcoin. The idea is that investors might start looking at Bitcoin as a safe haven asset instead, potentially driving up its price.

Recent large cryptocurrency purchases by wealthy investors, combined with other signals, suggest that Bitcoin might be poised for a significant price increase.

Gold Leads, BTC Follows

Gold prices surged at the beginning of the year, hitting a record high of around $5,600 in late January. However, since then, the price has fallen by about 11%, and today, February 17th, it dropped below the key $5,000 mark.

Some people in the financial industry have noticed a connection between how gold and Bitcoin perform. Earlier this month, a Twitter user named Merlijn The Trader pointed out that when the price of gold drops recently, Bitcoin’s price tends to go up soon after.

From my analysis, gold consistently sets the trend, and Bitcoin tends to follow. I’ve observed that when gold prices start to decline, investors often move their money out of gold and into Bitcoin, seeking new opportunities for profit. It’s a clear rotation of capital, in my view.

Ash Crypto noticed a similar pattern. Looking back at mid-2020, gold prices suddenly dropped, and soon after, Bitcoin began a significant price increase.

Crypto experts like Crypto Fergani and Gargoyle also suggest that money tends to move from precious metals into Bitcoin when precious metal investments slow down.

As an analyst, I’ve observed a compelling pattern: Bitcoin often follows gold’s price action, though not always at the same time. We’re seeing a three-stage cycle in both assets – a base-building phase, an accumulation phase, and then a ‘pump’ or price increase. My analysis of the charts suggests gold has already moved through all three stages, while Bitcoin is still in the accumulation phase and hasn’t begun its final ‘pump’ yet.

More Bullish Factors

Despite a nearly 30% price drop in the last month, large Bitcoin investors – often called ‘whales’ – are still buying, suggesting they remain positive about BTC’s future, as reported recently by CryptoPotato.

Large investors, often called “whales,” are thought to have valuable knowledge about what’s going to happen in the market. Because of this, many people believe their trading isn’t just luck or based on emotion, but rather a calculated strategy.

It’s also helpful to watch for certain market signals and price patterns. One example is Bitcoin’s Market Value to Realized Value (MVRV), which has been going down lately and is currently around 1.25. This metric compares Bitcoin’s current market value to the original purchase price of all existing Bitcoins. According to CryptoQuant, an MVRV below 1 often suggests a market bottom, while a value above 3.7 might indicate a peak.

According to well-known analyst Ali Martinez, the price of the asset appears to be forming a bullish “Adam and Eve” pattern. If it rises above $71,500, it could potentially reach $79,000.

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2026-02-17 22:02