What This Unusual Market Shift Means for BTC

Gold is now down more than 20% from its ATH near $5,600, and its latest decline was its worst weekly performance since 2011.

Bitcoin’s correlation with gold fell to 0.9, its lowest level in 3 years.

This is according to Wise Crypto analyst, who noted that similar readings in the past have appeared near major BTC lows, suggesting the possibility that the asset may be entering a recovery phase.

Separation of Links

According to Crypto Intelligence data, shared by X on March 24, Bitcoin is stabilizing while gold is weakening, with the BTC-to-gold ratio down nearly 70% from its previous peak. If you look at history, the analyst pointed out that such situations occur when Bitcoin stops falling and starts to recover.

There is also a lot more accumulation of whales, adding to the argument that the main owners are within the current price range.

Additionally, Wise Crypto pointed to recent geopolitical developments, which have added context to BTC’s performance relative to traditional assets.

“Add macro + geopolitical volatility, and the case grows,” they wrote. “Bitcoin may already be down.”

As we previously reported, the cryptocurrency gained 7% after the start of the US-Iran conflict on February 28, while gold fell 2% and the Nasdaq 100 slipped slightly.

That relative strength comes even with sharp intraday swings associated with trending headlines. And yesterday was another example of how these topics affect BTC. Initially, the flagship cryptocurrency reached about $71,500 after US President Donald Trump spoke about the temporary standoff between his country and Iran. However, Iran quickly denied these claims, bringing BTC back to $70,000 and contributing to the liquidation of over $800 million.

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Meanwhile, gold plunged deeper into a bear market, shedding nearly 10% last week, when it registered its weakest performance since September 2011. The negative showing has now seen it fall more than 20% from its all-time high near $5,600 recorded in January.

As Crypto Wise noted,

“If history rhymes, BTC may be poised to outperform gold next.”

Reducing Short-Term Sales Pressure

On the other hand, Bitcoin was trading at $71,000 at the time of writing, having gained more than 3% in the last 24 hours. However, it is down 5% in 7 days, although the close to 4% rise over the last month shows that the stock may be consolidating instead of a clear downward trend.

Meanwhile, CryptoQuant contributor Amr Taha says the short-term selling pressure on Binance has eased, with the short-term holder’s 7-day standard deviation realizing profit and loss down to 255, the level last seen before BTC held rebounds of 10% to 14%. For example, there was a similar reading in late February, followed by Bitcoin from around $66,000 to more than $75,000.

This decrease in volatility suggests that there has been a quick sell-off from short-term sellers, and although losses may still exceed gains in the current flow, it appears that the overall pressure is easing, which in the past has been associated with stable price conditions.