Investing.com -- Cantor Fitzgerald analysts pointed out that despite a strong fundamental outlook for Bitcoin, including increased corporate adoption and favorable regulatory developments, technical indicators suggest potential challenges ahead.
Analyst Brett Knoblauch noted that Bitcoin might have to revisit key price levels, such as the pre-election prices around $70,000 and the cost-basis of MicroStrategy (NASDAQ:MSTR) at approximately $66,000.
"While the fundamental story for Bitcoin has arguably never been greater with corporate adoption and regulatory tailwinds, technicals remain challenging, with some believing that Bitcoin will need to test key levels before returning to highs."
In contrast, XAU/USD has experienced a robust beginning to the year 2025, with a 13.9% increase year-to-date (YTD), significantly outperforming Bitcoin, which has seen a 13.9% decline over the same period. This divergence in performance is highlighted by the historically low correlation between the two assets.
The surge in gold’s value has been attributed to heightened investor interest amid ongoing tariff disputes from the Trump administration, which have contributed to increased market volatility.
During such times of uncertainty, investors have traditionally turned to gold as a safe haven. Bitcoin, on the other hand, has not enjoyed similar gains.
"Why is Bitcoin not experiencing the same gain? We believe the broader market has yet to grasp the concept of Bitcoin as a store of value, or reserve currency, and still view the digital asset as a more risk-on asset," Knoblauch wrote in a note.