"Recent bitcoin price action has left many investors frustrated. Despite setting new all-time highs above $120,000 earlier this year, the bitcoin price has struggled to keep pace with equities and Gold in recent months. The S&P 500 and precious metals have surged to new records, while Bitcoin has remained range-bound, giving the impression that it's lagging behind. But when analyzing the market through a lens of capital rotation, this period of underperformance may not last much longer."
"While Bitcoin has appeared weak in dollar terms, it remains one of the strongest performers over the past year. BTC has still outperformed both Gold's 46% and the S&P 500, yet even with that outperformance, the structure of the market makes it feel as though Bitcoin is still under-delivering. Measuring Bitcoin against other assets like equities and Gold rather than the dollar, which is itself depreciating, gives a more accurate view of its purchasing power and real market standing."
"The Bitcoin to Gold ratio tells a similar story. Despite reaching new highs in dollar terms, BTC actually remains well below its previous cycle's all-time high when priced in Gold. A full recovery to that ratio would place the bitcoin price near $150,000, and reclaiming the brief 2024 high would push it closer to $160,000. These comparisons help explain why sentiment feels more muted despite record prices."
Bitcoin reached new all-time highs above $120,000 earlier this year while equities and precious metals also climbed to records. Despite dollar gains, Bitcoin has traded range-bound recently and appears to lag the S&P 500 and Gold. Measured against other assets rather than the dollar, Bitcoin remains one of the strongest performers over the past year and has outperformed Gold's 46% and the S&P 500. The BTC/S&P ratio sits only slightly above the previous cycle peak, implying roughly $135,000 if reclaimed. The BTC/Gold ratio remains below its prior cycle high, implying recovery targets near $150,000–$160,000, and capital rotation could narrow the relative underperformance.
Read at Bitcoin Magazine
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