The price of bitcoin has entered a bearish phase, stemming from the asset’s constant decline and range-bound movement. As a result, the largest cryptocurrency has decoupled from gold.The negative correlation between bitcoin and gold reflects a risk-averse environment where investors prefer traditional safe-haven assets over speculative ones like cryptocurrencies. While BTC is decoupling from the metal, the crypto asset has beenin the same direction with lower United States stock markets.
Bitcoin is also moving in the same direction as the U.S. dollar, which has weakened against other currencies. According to CryptoQuant, a weakening dollar and a declining BTC could indicate broader financial stress or risk aversion when global markets face uncertainty. This causes investors to flee from the USD and riskier assets.Bitcoin’s descent has caused its valuation metrics to turn bearish.