Investing.com — Analysts at Cantor Fitzgerald noted that despite strong fundamental prospects for Bitcoin, including growing corporate adoption and favorable regulatory changes, technical indicators suggest potential difficulties ahead.
Analyst Brett Noble noted that Bitcoin may need to return to key price levels, such as pre-election prices around $70,000 and the base value of MicroStrategy (NASDAQ:MSTR) at approximately $66,000.
"Although the fundamental story of Bitcoin may never have been better thanks to corporate adoption and regulatory tailwinds, technical indicators remain challenging, and some believe that Bitcoin will need to test key levels before returning to its highs."
In contrast, XAU/USD has shown a strong start to 2025 with a 13.9% increase year-to-date (YTD), significantly outperforming Bitcoin, which has declined by 13.9% over the same period. This divergence in dynamics is highlighted by the historically low correlation between the two assets.
The rise in gold prices is attributed to increased investor interest amid ongoing tariff disputes from the Trump administration, which have contributed to heightened market volatility.
In such periods of uncertainty, investors traditionally turn to gold as a safe haven. Bitcoin, on the other hand, has not received similar advantages.
Why isn't Bitcoin experiencing the same growth? We believe that the broader market has yet to recognize the concept of Bitcoin as a store of value or reserve currency, and still views the digital asset as a more risky investment.