Bitcoin’s value downtrend is probably not as short-lived as many holders anticipate, says crypto analyst Benjamin Cowen.
“Bitcoin’s seemingly going to maintain bleeding towards the inventory market,” Cowen stated in a video on Thursday, including that robust expectations of a “huge rotation” from metals like gold and silver into crypto could also be misplaced.
The costs of gold and silver have lately surged to all-time highs of $5,608.33 and $121.64, respectively, based on Buying and selling Economics.
Citi predicts silver gained’t decelerate
Citi predicted on Tuesday that silver might climb to $150 throughout the subsequent three months, pushed by Chinese language demand and the US greenback hitting four-year lows.
Nevertheless, Cowen emphasised that the rotation to Bitcoin is “in all probability not going to occur” within the brief time period.
Many within the crypto market are betting that gold and silver hitting new all-time highs is a sign that historical past will repeat and Bitcoin will ultimately observe.
Bitcoin is buying and selling at $82,859 on the time of publication, down 7.78% over the previous seven days, based on CoinMarketCap.
It comes as sentiment throughout the broader crypto market has been waning. The Crypto Worry & Greed Index, which measures general crypto market sentiment, posted an “excessive concern” rating of 16, indicating that buyers are considerably cautious concerning the crypto market.
Different analysts are extra optimistic
Swyftx lead analyst Pav Hundal instructed Cointelegraph that the market could also be close to a turning level, saying, “We’re proper on the cusp of the place we might historically count on to see re-risking again into Bitcoin.”
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“Bitcoin bottoms have traditionally lagged gold’s relative power by about 14 months,” Hundal defined, including that he anticipates the rotation will occur in February or March.
“If historical past repeats, and it’s a huge if, the gold-Bitcoin dynamic factors to a possible BTC backside forming over the subsequent 40 days,” Hundal stated.
Hundal emphasised that gold usually leads in periods of macro stress, after which Bitcoin follows as soon as threat urge for food returns.
“If that mannequin isn’t damaged, the tape ought to begin to look much less fragile by the tip of the quarter,” he stated.
In the meantime, Bitwise Europe head of analysis, Andre Dragosch, stated in an X put up on Jan. 19 that Bitcoin “is buying and selling at a steep low cost to Gold on a relative foundation.”
“These uneven setups are very uncommon,” he stated, including that “if flows flip, Q1 2026 could possibly be the inflection level.”
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