 ▲ Gold, Bitcoin (BTC) |
Bitcoin (BTC) has surged nearly 5% in a single day, signaling the full-scale onset of a so-called bullish rotation as funds exiting the gold market flow into digital assets.
According to cryptocurrency media outlet Cointelegraph, on February 25 (local time), Bitcoin staged a strong rebound despite market concerns, drawing investors’ attention back to the digital asset market. Analysts say that as gold’s rally—previously driven by safe-haven demand—has stalled, suppressed buying demand for Bitcoin has exploded, triggering a major capital shift. This rebound followed the firm establishment of a technical support level, further heightening market expectations.
On-chain data, which reflects market capital flows, clearly shows signs of asset reallocation from gold to Bitcoin. As gold prices entered a correction phase in recent weeks, institutional investors and whales reduced their gold exposure and began accumulating what they viewed as undervalued Bitcoin in large quantities. Crypto analytics firm Santiment reported a sharp surge in positive sentiment surrounding Bitcoin on social media, indicating that investor psychology is rapidly shifting from fear to greed.
Technical analysts are paying close attention to Bitcoin’s breakout above a key price range and its move beyond a downward trendline. This 5% surge is seen as more than a simple technical rebound, with a strong possibility that it marks the beginning of a new upward rally. Notably, charts comparing the relative value of gold and Bitcoin are showing a golden cross pattern after Bitcoin bottomed out and rebounded, suggesting that digital assets could strengthen their market dominance in the period ahead.
Institutional capital inflows are also supporting Bitcoin’s rebound. Net inflows into spot Bitcoin ETFs have regained momentum, while asset managers are increasing their Bitcoin allocation. At a time when traditional safe-haven assets such as gold are losing appeal as inflation hedges, Bitcoin is once again demonstrating its value as an alternative asset by delivering standout returns.
Bitcoin is currently absorbing overall market liquidity as it secures momentum for further gains. As significant capital exits the gold market and settles into the Bitcoin ecosystem, the overall cryptocurrency market capitalization is expected to become more robust. Investors should formulate their market strategies by closely monitoring the massive liquidity shift from gold to Bitcoin and whether key resistance levels are decisively broken.
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