Analyst: Bitcoin May Continue to Underperform Relative to US Stocks, Short-Term Capital Rotation Unlikely to Occur

Odaily News Cryptocurrency analyst Benjamin Cowen stated that the current downtrend in Bitcoin may not end as briefly as some holders anticipate. "Bitcoin will likely continue to underperform relative to the stock market," Cowen said in a video on Thursday, suggesting that market expectations for a large-scale rotation of capital from precious metals like gold and silver into crypto assets may be overly optimistic. Precious metal prices have been strengthening recently. Data shows that gold and silver prices have reached new all-time highs of $5,608.33 and $121.64, respectively. Citigroup further predicts that silver could rise to $150 within the next three months, driven by Chinese demand and against the backdrop of the US dollar falling to a four-year low.

However, Cowen believes that a rotation of funds into Bitcoin in the short term is "very unlikely to happen." Although many views within the crypto market suggest that new highs in precious metals often precede a subsequent catch-up rally in Bitcoin, he emphasized that the current cycle structure does not support this judgment. As of the time of writing, Bitcoin is trading at $82,859, down 7.78% over the past 7 days. Meanwhile, market sentiment continues to weaken, with the Crypto Fear & Greed Index dropping to 16, entering the "Extreme Fear" zone. (CoinTelegraph)