Analysis: Correlation Between Bitcoin and Gold Turns Negative as Investors Favor Traditional Hedging Assets

According to CryptoQuant, investors seem to favor traditional safe-haven assets like gold over bitcoin in the current risk-averse environment. 
The correlation between bitcoin and gold has recently fallen sharply into negative territory, with the price of gold recently hitting new highs above $2,500 per ounce, while bitcoin has been declining and is now more than 20 percent below its all-time high of more than $73,000 set in March. As investors buy gold and sell bitcoin, the U.S. stock market has been underperforming, with the S&P 500 down 3.6 percent since Aug. 30th.
CryptoQuant's Bull-Bear Cycle Indicator has been in a bearish phase since August 27, when Bitcoin was trading at $62,000.
The MVRV ratio (Market Value to Realized Value) has also been below its 365-day moving average since August 26, suggesting that the price may be headed for a further correction. the MVRV ratio falling below the moving average was a precursor to the 36% decline in Bitcoin in May 2021.