According to analysts, a “consolidation situation” has developed in the crypto market—after Bitcoin failed to hold the important \$90,000 support level. Short-term holders of the crypto asset continue to increase selling pressure and exit their positions at a loss, CryptoQuant representatives noted.
For their part, precious metals demonstrated stable growth amid economic uncertainty and investors’ anticipation of lower lending interest rates.
“The base scenario is that gold and silver will maintain support due to the desire to invest in safe-haven assets, whereas Bitcoin’s growth potential will be limited by weak demand and pressure from short-term coin holders. At the same time, if visible demand steadily moves into positive territory, Bitcoin has a chance to catch up with precious metals,” CryptoQuant experts believe.
Unfortunately, Bitcoin continues to be perceived by the market as a high-risk asset rather than a reliable “safe harbor,” analysts lamented. As uncertainty intensifies, major players move capital into gold and government bonds; for them, cryptocurrency remains a secondary choice, experts explained.
Bitcoin retains a strong dependence on demand, which has almost vanished. Therefore, economic catalysts alone are insufficient to form a sustainable rally, CryptoQuant representatives concluded.
Earlier, economist and proponent of gold investment, Peter Schiff, nicknamed the “Gold Bug” in the community, stated that the yellow precious metal has a much greater chance of reaching a price of \$1 million than the first cryptocurrency.
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