Analyst: Bitcoin may continue to weaken relative to US stocks, and short-term capital rotation is unlikely to occur

According to Odaily, crypto analyst Benjamin Cowen stated that the current downward trend of bitcoin may not end as quickly as some holders expect. "Bitcoin is likely to continue underperforming relative to the stock market," Cowen said in a video on Thursday. He pointed out that market expectations for a large-scale rotation of funds from precious metals such as gold and silver into crypto assets may be overly optimistic. Recently, precious metal prices have continued to strengthen. Data shows that gold and silver prices have risen to historical highs of $5,608.33 and $121.64, respectively. Citigroup further predicts that, driven by demand from China and the US dollar falling to a four-year low, silver may rise to $150 in the next three months.

However, Cowen believes that in the short term, a rotation of funds into bitcoin is "very unlikely to happen." Although many in the crypto market believe that new highs in precious metals are often a precursor to bitcoin catching up, he emphasized that the current cycle structure does not support this view. At the time of writing, bitcoin is priced at $82,859, down 7.78% over the past 7 days. Meanwhile, market sentiment continues to weaken, with the Crypto Fear & Greed Index dropping to 16, entering the "extreme fear" zone. (CoinTelegraph)