- Bitcoin faces prolonged downtrend, says expert, as market sentiment wanes.
- Analysts predict Bitcoin’s potential recovery despite recent price struggles.
- Gold’s rise contrasts Bitcoin’s decline, but market shifts are possible.
Bitcoin’s price has seen a notable decline in recent weeks, and crypto analyst Benjamin Cowen suggests that this downtrend could last longer than many investors are hoping for. Speaking in a recent video, Cowen expressed concerns that Bitcoin will continue to struggle, particularly in relation to the broader stock market. He cautioned that the much-anticipated rotation of capital from traditional assets like gold and silver into cryptocurrency might not occur as quickly as some expect.
Cowen highlighted that despite the soaring prices of gold and silver, which recently reached new all-time highs of $5,608.33 and $121.64 respectively, there is no guarantee that Bitcoin will follow suit. The expert pointed out that historical patterns do not support a swift transition from traditional metals to cryptocurrencies in the short term. As of now, Bitcoin’s price has dropped 6.12% over the past 30 days, trading at $82,859 at the time of publication, marking a 7.78% decrease over the last week.
Sentiment in the crypto market is notably cautious, with the Crypto Fear & Greed Index recently recording an “extreme fear” level of 16. This indicates that investor confidence in Bitcoin is currently low. However, there are contrasting views within the industry regarding Bitcoin’s near future.
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Potential Shifts Ahead, According to Optimistic Analysts
While Cowen remains cautious, other analysts are more optimistic about Bitcoin’s potential recovery. Swyftx’s lead analyst, Pav Hundal, noted that Bitcoin may be nearing a turning point. He explained that Bitcoin has historically followed gold in terms of price movements during times of macroeconomic stress, and that the cryptocurrency could see a resurgence as risk appetite returns to the market. Hundal speculated that a shift could occur as early as February or March, predicting that Bitcoin’s bottom might form over the next 40 days.
Additionally, Andre Dragosch from Bitwise Europe argued that Bitcoin is currently trading at a significant discount compared to gold. He suggested that if market conditions change, Q1 of 2026 could be a key inflection point for Bitcoin.
While opinions remain divided on Bitcoin’s short-term outlook, it’s clear that the cryptocurrency market is facing significant challenges. As many investors and analysts await a potential rotation from metals to crypto, it remains to be seen whether Bitcoin can reclaim its upward momentum. Despite the uncertainty, the next few months could reveal whether Bitcoin follows gold’s pattern or continues to lag behind.
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