BEARISH 📉 : Bitcoin struggles as dollar weakens, gold outshines crypto

The US Dollar Index has dropped over 10% in the past year, but Bitcoin has not shown strength, puzzling investors. In contrast, gold and silver are reaching new highs.

Reasons for Bitcoin's Underperformance

Historically, BTC moves opposite to USD.
JPMorgan strategists attribute USD weakness to short-term market flows and sentiment, not a fundamental shift.
US rate differentials still favor the dollar, suggesting the USD weakness might be temporary.
Any recovery in the US economy could bolster the dollar index, affecting Bitcoin as a hedge.

Gold vs. Bitcoin as Store of Value

Gold prices have surged to $5,500 amid USD weakness, while Bitcoin remains rangebound.
Bitcoin is behaving more like a liquidity-sensitive risk asset than a store of value.
$1.8 billion outflows from US Bitcoin ETFs indicate declining institutional confidence.

Peter Schiff criticized Bitcoin, stating it is losing its appeal compared to gold. According to Glassnode, Bitcoin is consolidating with low trading volumes, and long-term holders have sold around 143,000 BTC in the last month, the fastest distribution since August 2025.

Bitcoin long-term holder net position | Source: Glassnode