Market Experts Insist Funds Won't Flow from Gold to Bitcoin, BTC Pullback Synchronizes with XAU

Gate News Report, March 20 — Senior market analyst Benjamin Cowen stated that Bitcoin will not see capital inflows due to a pullback in gold prices. Earlier this week, Bitcoin briefly reached a high of $76,000 before retreating, breaking below the key psychological level of $70,000, down approximately 8.78% from its peak. Meanwhile, the world’s largest asset, gold (XAU), also plummeted 8.54% this week, confirming Cowen’s long-term view that funds are not rotating from precious metals into Bitcoin.

Cowen pointed out that Bitcoin’s recent correction coincided with a sharp decline in gold prices, indicating a high correlation between the two during market volatility. He emphasized that this contradicts the common expectation among crypto enthusiasts that capital will flow from gold into Bitcoin. Although Bitcoin dropped to $63,000 at the end of February amid market turmoil caused by the Israel-Iran conflict, it rebounded continuously, only to encounter resistance near $74,000 earlier this week and slightly retreat.

Despite this, the Bitcoin-to-gold price trend shows some resilience. From the beginning of the month to now, BTC/XAU has risen from 12 ounces of gold to 15 ounces, marking two consecutive weeks of gains and potentially a third week of closing higher. However, the price still faces resistance at the middle and upper bands of the Bollinger Bands, located at 18 and 26 ounces of gold, respectively, limiting short-term rebound potential.

Cowen reiterated that market rotation has not yet occurred. Although a decline in precious metals has historically triggered capital inflows into Bitcoin, current market performance indicates that Bitcoin has not yet been supported by gold funds. After six consecutive weeks of weakness in gold, Bitcoin has shown some rebound, but overall market pressure remains, and short-term trends should focus on key support levels and psychological thresholds.

Overall, the correlation between Bitcoin and gold highlights the performance characteristics of cryptocurrencies amid global macro turbulence. Investors should monitor whether BTC can stabilize above the $70,000 support zone to assess potential rebounds and risks.