Recent price stability in Bitcoin during a decline in Gold has sparked debate about whether investor behavior is starting to change.
Gold has entered a significant downturn, marking its longest losing streak in over a century, a pattern not seen since February 1920. Prices have fallen more than 25 percent from their January peak, briefly dropping to around 4,090 dollars before recovering to roughly 4,455 dollars during the week.
Despite speculation that funds are moving from gold into Bitcoin, recent data indicates that both assets are currently under pressure.
Bitcoin Struggles to Benefit From Gold Weakness
Crypto analyst Darkfost has pointed to early signs that challenge the idea of a major shift of capital from gold into Bitcoin. After a strong rally earlier in the year, gold has moved into a correction phase and dropped below its 180 day moving average due to margin calls and forced liquidations.
At the same time, Bitcoin has stabilized after recent volatility but is still trading below its own 180 day moving average, which sits near 89,700 dollars.
According to this analysis framework, a true rotation signal would require divergence between the two assets. Bitcoin would need to move back above its long term trend while gold remains below it. Instead, both are currently trading under this level, creating what is considered a negative signal.
This suggests that rather than a clear transfer of capital, both markets are experiencing similar phases of weakness or consolidation. The model, designed to reflect broader trend behavior, indicates that any potential rotation is either not yet happening or is too weak to significantly influence Bitcoin’s price.
The analyst also noted that it remains difficult to confirm whether money leaving gold positions is actually flowing into Bitcoin in a measurable way.
Different Perspectives on the Trend
Not all market participants dismiss the idea of a shift entirely. Some believe the current situation may represent the early stages of a much larger structural transition. According to this view, markets could be underestimating how significant a move from gold into Bitcoin might become over time.
If such a shift does materialize, it could rank among the largest reallocations of capital in financial history. Under this scenario, Bitcoin’s long term outlook could rise dramatically, with projections suggesting it might reach as high as 800,000 dollars by the end of the decade.
A similar argument has been made by Bitwise Asset Management, which previously highlighted how even a small shift of capital from gold could have a large impact on Bitcoin. In October 2025, the firm estimated that redirecting just 3 to 4 percent of gold’s market value could potentially double Bitcoin’s valuation, while a 2 percent shift alone might push its price above 161,000 dollars.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
