Bitcoin Price Slump Could Spark Next Bull Run

Although Bitcoin has recently lagged behind the S&P 500 and Gold in dollar terms, analysis based on relative gains suggests this underperformance is temporary. When measured against the S&P 500 or Gold, Bitcoin's current purchasing power is below previous cycle peaks, explaining muted investor sentiment despite setting new USD highs.

Historically, sharp rallies in Gold have preceded major bull phases for Bitcoin, indicating a capital rotation from defensive assets into riskier ones like BTC. This pattern is potentially repeating now, as Gold shows signs of topping while equities strengthen, signaling a shift toward risk-on conditions.

Since Bitcoin remains strongly correlated with the S&P 500, sustained equity strength is a reliable precursor to Bitcoin outperformance. The current market dynamics suggest that the capital rotation seen in past cycles is setting up again, positioning Bitcoin to move from a laggard back to a market leader soon.

(Source：Bitcoin Magazine)