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.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
MicroStrategy Stock Rallies as Bitcoin Breaks $78K, Unrealized Gains Return to $1.37B
MicroStrategy's stock surged 13.83% as Bitcoin reclaimed $78,000, returning the company to an unrealized profit of $1.37 billion. The rise follows easing tensions in the Middle East and a broader rally in risk assets, despite criticism of its preferred stock.
GateNews10m ago
Morgan Stanley Purchases 177.76 BTC Worth $13.75 Million
Gate News message, Morgan Stanley bought 177.76 BTC worth $13.75M three hours ago. The firm now holds 1,347.54 BTC worth $103.94M in total.
GateNews2h ago
BTC fell below 77000 USDT
Gate News bot message, Gate quotes show that BTC fell below 77000 USDT, trading at 76961.6 USDT.
CryptoRadar3h ago
NYSE Welcomes Morgan Stanley’s MSBT Launch as First Spot Bitcoin ETF Issued by a Major US Bank
Bank-backed bitcoin ETFs are accelerating institutional adoption and strengthening market credibility. The NYSE marked a new milestone as Morgan Stanley Investment Management rang the closing bell and celebrated the launch of MSBT, which the NYSE described as the first spot bitcoin ETF by a major
Coinpedia7h ago
BTC falls 0.49% in 15 minutes: fragile long leverage and active sell-off pressure resonate to weigh on the short term
From 18:00 to 18:15 (UTC) on 2026-04-17, the BTC price fluctuated and trended downward within the 77097.4 to 77573.2 USDT range. Over these 15 minutes, the return rate recorded -0.49%, and the amplitude reached 0.61%. During this period, market trading was active; short-term volatility was amplified, and trading attention increased significantly. The main driver behind this abnormal move is that the overall leverage structure is bearish and long positions are fragile. At present, the BTC perpetual contract funding rate has remained negative for 11 consecutive days, indicating that the bears have the upper hand in the market. In addition, futures open interest (OI) is about 628.3 billion USDT, which is at a historical high. During the anomaly window, trading volume increased noticeably. On-chain data shows large amounts of BTC flowing from long-term holder addresses to exchanges, suggesting that active sell orders may have triggered longs to passively reduce positions, amplifying downward price pressure. Moreover, institutional positioning enthusiasm in the mainstream contract market has cooled off; liquidity boundaries have tightened, causing large-trade activity to have an amplified effect on market volatility. In the options market, implied volatility rose to 39.81%, increasing demand for downside protection and reflecting a defensive posture among market participants. Macro-environment volatility and some capital flowing into safe-haven assets, together with the recent regulatory uncertainty-related historical events, reinforced the move, pushing overall market risk appetite lower. Current BTC leverage risks still remain. If, in the future, there are concentrated sell-offs, volatility may be further amplified. It is recommended to continue monitoring sustained high OI levels, the persistence of negative funding rates, and on-chain transfers of large amounts of funds, and to stay alert for whale behavior and any disruptions to market sentiment caused by macro-policy developments. For subsequent price action, please watch key support levels, institutional and whale on-chain moves, and relevant global market news, and guard against short-term risks.
GateNews8h ago
