Bitcoin Holds Near $111K as Gold Correlation Hits Multi-Year High

Bitcoin’s sharp decline to the $107,000 level reflects mounting investor anxiety, as the Fear & Greed Index drops to 28 amid escalating U.S.–China trade tensions.

BTC

Summary

Bitcoin fell to approximately $107,000 as investor sentiment turned fearful, with the Bitcoin Fear & Greed Index reading 28 out of 100, nearing the 'Extreme Fear' zone. The drop coincides with growing trade tensions between the U.S. and China, ahead of an address by President Donald Trump. Market data from Bitcoin Magazine Pro indicate that Bitcoin may be temporarily undervalued, with recent price action rebounding from oversold conditions on the Advanced NVT Signal. Gold, meanwhile, surged to record highs near $4,270 per ounce, gaining nearly 60% year-to-date, while Bitcoin’s annual growth stands around 20%. The contrast underscores diverging investor behavior between risk-on assets like Bitcoin and safe-haven assets like gold.

Terms & Concepts
  • Fear & Greed Index: A sentiment indicator measuring investor emotions in the Bitcoin market on a scale from 0 (extreme fear) to 100 (extreme greed).
  • Advanced NVT Signal: An on-chain metric comparing Bitcoin’s market capitalization to transaction volume, used to assess potential overvaluation or undervaluation.
  • Safe-Haven Asset: An investment, such as gold, that is expected to retain or increase in value during times of market turmoil or uncertainty.