Gold knocks on a 50-year closed door as BTC price faces a defining support test

Gold is currently at a critical juncture when measured against the U.S. money supply (M2SL), reaching a level not surpassed since the 1970s, when it eventually tripled in price. This surge of 70% this year contrasts sharply with Bitcoin, which is down about 10% and is currently retracing toward a key cycle support level, revisiting lows seen during the 2019 "tariff tantrum."

Despite the price drop, Bitcoin continues to set fresh highs relative to the money supply each cycle, and the current support level also corresponds to the prior cycle high from March 2024. The article also briefly mentions a separate report noting that 2025 saw a divergence where structural blockchain progress and institutional wins did not translate into positive returns for most large-cap Layer-1 tokens.

(Source：CoinDesk)