Stocks, Gold, AI Are Rising – So Why Is Bitcoin Falling? | US Digital Currency News


Welcome to the US Cryptocurrency News Morning Brief – your essential summary of the most important cryptocurrency developments for the day ahead.

Grab a coffee and watch the markets change – Bitcoin is falling, while stocks, gold and technology are rising, leaving even seasoned investors wondering what’s next. Experts have warned that this discrepancy may point to deeper structural forces and shed light on questions about future market flows.

Sponsored

Sponsored

Today’s Cryptocurrency News: Bitcoin to Gold Ratio Indicates Potential Volatility

Bitcoin is falling while traditional markets are rising, leaving investors confused and analysts scrambling for answers. The world’s largest cryptocurrency fell sharply, even as stocks, gold, Silver stocks and AI-driven technology hit records.

Mike McGlone, chief commodities strategist at Bloomberg, highlighted a key indicator: the Bitcoin-to-gold ratio.

McGlone said The ratio of value store of about 20 times compared to Bitcoin on December 1 is about 50% below the peak of 40x reached after the re-election of President Donald Trump.

This ratio has historically been used as a measure of relative strength between… Bitcoin and gold. The sharp decline may indicate that Bitcoin is underperforming other risky assets ahead of a potential increase in market volatility.

Analysts expect that if this trend continues, Bitcoin may revisit lower relative levels, which could impact… governor It relies heavily on cryptocurrencies.

Cryptocurrency liquidation challenges market fundamentals

Meanwhile, Jeff Dorman, chief investment officer at Arca, described the sale as one of the strangest cryptocurrency sales ever. Dorman noted that General economic environment Very positive, with stocks, credit and precious metals breaking new records.

Sponsored

Sponsored

this Supported by lower interest rates from the Federal Reservestrong consumer spending, record corporate profits, and as long as there is sustained demand for AI-driven technology.

Dorman explained what you do “All the alleged reasons” for selling cryptocurrencies could easily be disproved or reversed – MSTR didn’t sell, Tether didn’t fail, DAT didn’t sell, NVDA didn’t explode, and the Fed didn’t tighten.

He argues that the underlying problem is structural:

  • Native crypto investors are exhausted, and
  • The institutional funds of the main players such as Vanguard, State Street, BNY, JPMorgan, Morgan Stanley and Goldman Sachs have not yet entered the market in a significant way.

Until regulations allow these institutions to buy easily, liquidity will remain limited.

Sponsored

Sponsored

He presents The difference between cryptocurrencies and traditional markets For risks and opportunities. For investors, the low Bitcoin-to-gold ratio and the absence of institutional flows indicate high short-term volatility.

The arrival of large-scale institutional money can eventually create significant bullish momentum once the barriers to adoption are removed.

If the ratio Bitcoin-to-gold continues to fall, it could announce an increase in the feeling of risk, while the income of slow institutional investors could delay the recovery.

Today’s chart

The lower the volatility, the lower the model points for the Bitcoin/Gold ratio.
The lower the volatility, the lower the model points for the Bitcoin/Gold ratio. Source: Bloomberg’s Mike McGlone on X

Sponsored

Sponsored

Alpha is small

Here’s a roundup of other US cryptocurrency news to follow today:

Overview of Crypto actions before the market opens

Company At the end of December 1 Early market overview
Strategy (MSTR) $171.42 $175.33 (+2.28%)
Coinbase (COIN) $259.84 $264.62 (+1.84%)
Galaxy Digital Holdings (GLXY) $24.80 $25.28 (+1.98%)
MARA Holdings (MARA) $11.52 $11.75 (+2.00%)
Riot Platforms (RIOT) $15.48 $15.73 (+1.61%)
Core Scientific (CORZ) $16.59 $16.75 (+0.96%)
The race to open the digital currency exchange: Google Finance



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *