Outside Source
Bitcoin may be flagging on short timeframes, but there is plenty of belief in BTC price discovery returning as gold surges.
Market Update
Bitcoin (BTC) abandoned its latest gains into the Feb. 11 Wall Street open as gold consolidated after a fresh all-time high.
BTC/USD 1-hour chart. Source: Cointelegraph/TradingView
Binance confusion spoils BTC price upside
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dropping $1,500 in a single hourly candle.
Reports that major global crypto exchange Binance had sold almost all of its Bitcoin, Ether (ETH), Solana (SOL) and others, appeared to exacerbate downside volatility.
While not new, the drawdown in Binance’s crypto reserves, rumored to be a result of profits on its holdings, became a hot topic across social media on the day, with Binance subsequently denying the claims.
Source: Binance Customer Support
BTC price action thus struggled as Wall Street began trading, while gold cooled its rampant ascent into price discovery.
This had produced fresh record highs of $2,942 per ounce after the daily open.
XAU/USD 1-hour chart. Source: Cointelegraph/TradingView
“Physical gold BUYING has gone apocalyptic: Gold inventories in the 3 largest COMEX gold vaults just surged by 15 MILLION ounces in 2 months,” trading resource The Kobeissi Letter responded on X.
“That’s a +115% increase, putting physical gold holdings ABOVE 2020 pandemic levels.”
COMEX gold storage data. Source: The Kobeissi Letter/X
Kobeissi attributed the phenomenon to US liquidity injections, along with uncertainty over inflation trends.
“And this is particularly the case as US Deficit spending is out of control. The US has borrowed $838 BILLION in the first 4 months of FY 2025,” it continued.
“This is crushing bond prices as treasury yields are driven higher. Gold’s position as the global hedge has only grown as a result.”
Gold adjusted for US M2 money supply. Source: The Kobeissi Letter/X
Counting down to Bitcoin’s gold copycat move
Others were optimistic that Bitcoin would still follow in gold’s footsteps — albeit after a traditional three-month delay.
Related: New Bitcoin miner ‘capitulation’ hints at sub-$100K BTC price bottom
Source: Cryptosahintas
Among them was crypto trader, analyst and entrepreneur Michaël van de Poppe.
“Bitcoin is likely to print new all-time highs,” he told X followers on the day.
“Gold has been printing strong all-time highs and I think we’ll see the same for Bitcoin in the coming 2-3 weeks.”
An accompanying chart described an “ideal zone for entries” on BTC/USD being around $90,000.
BTC/USDT 1-day chart. Source: Michaël van de Poppe/X
Charles Edwards, founder of quantitative Bitcoin and digital asset fund Capriole Investments, likened the situation to Summer 2024.
“As long as Gold keeps trending, Bitcoin almost always sees a comparable (bigger) breakout within 3-6 months. Hoping it’s on the short end of that horizon this time around,” part of an X post on the topic read.
“Tariffs = uncertainty + possible inflation. Central banks + Asia are bidding Gold hard as an inflation hedge. Rotation into the hardest asset on earth inevitable.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article first appeared at Cointelegraph.com News
