Bitcoin may continue to underperform equities as the current market cycle matures, and expectations for a rotation out of gold and silver into crypto could be misplaced, according to market analyst Benjamin Cowen.
Analyst questions precious metals rotation
Cowen cautioned that investors hoping for a shift from gold and silver into Bitcoin may be tracking the wrong signal. While precious metals have historically served as defensive assets, he suggested their movements are not a reliable trigger for sustained inflows into Bitcoin at this stage of the cycle.
‘Bleeding’ versus stocks refers to relative underperformance
The view implies Bitcoin could “bleed” against the stock market—losing ground on a relative basis even if prices remain stable or rise modestly. In such environments, equities can outperform on a risk-adjusted basis, leaving Bitcoin trailing major stock benchmarks.
Context and market implications
Gold and silver often attract safe-haven demand, while Bitcoin’s performance tends to be more sensitive to liquidity conditions and broader risk appetite. If equities remain strong and risk assets outside crypto continue to lead, Bitcoin’s relative strength could lag despite periods of positive price action.
Key signals to watch
- Bitcoin’s performance relative to major equity indices.
- Price action and flows in gold and silver.
- Macro indicators such as interest rates, bond yields, and the U.S. dollar.
- Crypto-specific metrics, including on-chain activity and market liquidity.