Bitcoin’s (BTC) Disappointment Amid Gold’s $4,710 Surge Sparks Market Frenzy

Bitcoin (BTC) has again become the topic of a heated discussion. This time the critique is voiced by one of the strongest long-term advocates. Mike Novogratz, the CEO of Galaxy Digital, has labelled BTC’s performance of late particularly ‘disappointing’ when measured against the tremendous surge in gold price.

While the rush to secure investments in traditional safe havens is quite evident, Bitcoin still has to deal with the issue of being recognized as ‘digital gold.’

The difference in the two assets’ performance is impossible to overlook. Gold prices are hitting all-time highs. On the other hand, BTC is facing a massive sell-off that is not stopping at any price level. This is quite a significant push for the market which usually relies on momentum.

Also Read: Gold Dominates at $4,710 as Bitcoin’s Volatility Worries Investors

Bitcoin Faces Pressure Amid Macro Alarm Bells

Novogratz is of the opinion that the worldwide macroeconomic scenario should be perfect for Bitcoin. But the price movement expresses another opinion. He believes that the classic markets are putting out distress signals about the United States dollar’s future. The most powerful signal is from gold.

In previous cycles, such anxieties have made BTC shine. This time, however, the reaction has been weak. Novogratz cautioned,

He also highlighted the bond market as a different source of worry. Increased tension in bonds, a softer dollar, and rising uncertainty are usually favorable for precious assets.

Nevertheless, BTC has not been able to lure the safe-haven bid. The risk-off mood is still taking over, which makes the buyers careful and the conviction low.

Bitcoin’s $100K Test and Galaxy’s Long-Term Bet

From the technical view, Novogratz got no problem telling what Bitcoin wants. The bulls have to take back the area of $100,000–$103,000 to bring back the wider uptrend. Until that time, BTC is to be found below $90,000, and the duplicity of the market and profit-taking is making the price heavier.

Galaxy Digital’s frustration in the short run is not, however, the company’s retreat. The company is in the process of starting a hedge fund that will hold $100 million in the first quarter of the year.

The fund will be supported by family offices, affluent investors, and institutions. Liquid cryptocurrencies will get as much as 30% of the fund; the company will hold BTC for the long term and will also invest in Ethereum and Solana.

The long/short strategy of the fund enables it to earn profits in the markets that are going down. That adaptability is indicative of the prevailing sentiment. Bitcoin might be having a tough time today, but for veterans like Novogratz, the marathon is not over yet.

Also Read: Bitcoin-Gold RSI Repeats Pattern Seen at Major Market Lows