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Bitcoin remained range bound on Tuesday, failing to retest the critical $80,000 resistance zone. Market data shows BTC moving sideways while traditional safe-haven assets like gold and silver attempted to recover from recent losses.
Gold surged back to nearly $4,971, gaining more than $500 from its weekly lows, while silver jumped over 11% in a single session. Meanwhile, US equity markets remained volatile, with weak earnings reports such as PayPal’s sharp decline adding to broader risk uncertainty.
Some traders believe Bitcoin may soon follow gold’s strength, as historical cycles often show capital rotating from precious metals into digital assets.
Crypto trader Jelle noted that gold has dominated for over a year and that Bitcoin has typically surged once gold’s momentum cools. However, not all analysts agree. Market analyst Northstar warned that Bitcoin could still weaken further when measured against gold, citing capital rotation and underwhelming BTC to gold performance in this cycle.
Matt Hougan, Chief Investment Officer at Bitwise, believes market sentiment not fundamentals is driving the pessimism.
“As a veteran of multiple crypto winters, I can tell you that the end of those winters feels a lot like now,” Hougan said, adding that despair often appears just before recovery.
Hougan argued that the current downturn effectively began in January 2025, despite strong inflows into US spot Bitcoin ETFs last year creating a temporary bull-market illusion. According to him, nothing structurally negative has changed for crypto, and a recovery could arrive sooner than expected.
With Bitcoin holding above key support levels and gold nearing historic highs, markets are at a critical inflection point. Whether capital flows back into Bitcoin or remains concentrated in traditional safe havens will likely define the next major trend for crypto in 2026.
