Bitcoin (BTC) had a disappointing start to Wall Street trading on August 16. The price of BTC was range bound, while the price of gold hit new highs.
Analyst: BTC Price Rally Is Weak “Says”
According to data from Cointelegraph Markets Pro and TradingView, BTC/USD is fluctuating between the two ends of its intraday trading range of $1,500.
Bitcoin avoided retesting its previous day’s low of $56,000, but it failed to impress market analysts.
“The fact that BTC won’t go up despite the good news may say more than people think,” Filbfilb, co-founder of the DecenTrader trading suite, told X.
Filbfilb noted that gold and stocks are currently outperforming bitcoin, with gold hitting a new all-time high of $2,500 on the day.
XAU/USD is up 21% year to date, but still below Bitcoin’s 38%.
Charles Edwards, founder of quantitative Bitcoin and digital asset fund Capriole Investments, struck a more positive tone in his response, urging “patience” but also acknowledging that Bitcoin’s recovery from its early August macro lows “has lagged other asset classes.”
Edwards previously suggested that Bitcoin would ultimately outperform gold, given historical precedent. He showed that the gap between gold and Bitcoin movements is about three months.
Bitcoin Stock Correlation Recovery in 2025
Meanwhile, Benjamin Cowen, CEO and founder of analytics resource Into the Cryptoverse, likened Bitcoin price movements to stocks, drawing similar comparisons to previous market cycles.
Related: Bitcoin Price Rebounds 4%, Triple ‘Death Cross’ Raises Sub-$50K Warning
“Just so you know, the Fed cut rates in 2019 too, and BTC didn’t do the same as SPX,” he wrote in an X post next to an S&P 500 chart.
Cowen commented on the likely direction of the Federal Reserve this year, with the market expecting a rate cut next month.
“Many people continue to act like this is unprecedented and hard to believe, but *exactly* the same thing happened last cycle,” Cowen added.
In a later comment, he said it would take until 2025 for the positive correlation between the two assets to return.
Cointelegraph previously reported that Bitcoin has shown unimpressive performance compared to Japanese stocks, which has reversed its previous plunge two weeks ago.
However, longtime Bitcoin analyst Tour Demeester says there is a chance the Bitcoin market could crash again.
“Let me be clear, the bleeding isn’t over yet!” he warned that day.
“A drop to $45,000 is not out of the question, for example, if there is a major selloff in the stock market. Buckle up.”
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