 ▲ Bitcoin (BTC) |
As Bitcoin (BTC) signals the possibility of further decline toward a historically low range, experts argue that the widening performance gap with gold indicates that a prime long-term accumulation opportunity has arrived.
In a video released on February 20 (local time), cryptocurrency-focused YouTube channel Altcoin Daily compared the returns of Bitcoin and gold to assess the current correction in the digital asset market. While mainstream media has recently highlighted gold’s strength, analysts point out that from a long-term perspective, gold remains down 85% relative to Bitcoin’s value compared to its 2019 peak. Rather than being swayed by short-term fluctuations, investors are urged to focus on the fundamental growth trajectory of the asset.
Tom Lee, co-founder of Fundstrat, warned of potential black swan risks associated with gold and emphasized Bitcoin’s relative advantage. Lee stated, “If gold prices rise excessively, companies may directly enter the mining business and significantly increase supply,” adding that “unexpected supply shocks—such as gold inflows from extraterrestrial asteroids or even the possibility of manufacturing through alchemy—could occur.” The potential erosion of scarcity further highlights Bitcoin’s algorithm-based digital scarcity.
Regarding Bitcoin’s price outlook, some analysts advise caution, citing similarities to past bear market patterns and warning of further downside. They suggest Bitcoin could experience one or two additional downward waves, potentially falling to the low $40,000 range. Rapid changes in the Middle East situation or U.S. President Donald Trump’s foreign policy moves over the next ten days could act as short-term catalysts increasing market volatility.
As a market strategy, experts recommend moving away from the obsession with identifying the perfect bottom and instead adopting a dollar-cost averaging approach to accumulation amid current uncertainty. A market bottom should not be defined by a single candle but recognized as an extended period marked by fading confidence and extreme fear. Lee advised, “Accumulating assets during times of deep doubt and diminished confidence is ultimately key to maximizing returns in the next cycle.”
The digital asset market is currently experiencing growing pains as it awaits the passage of the proposed U.S. cryptocurrency market structure bill, CLARITY, paving the way for greater institutional integration. Investors are advised to endure short-term downward pressure while preparing for long-term paradigm shifts in the industry. Amid macroeconomic uncertainty, attention is focused on whether Bitcoin’s status as a store of value will become even more firmly established.
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