Bitcoin News Today: Bitcoin's Gold-Like Aspiration Faces Volatility Reality Check

Bitcoin's recent price movements have reignited discussions about its potential trajectory, with some analysts suggesting a 10x surge could be in the cards if it follows the playbook of gold. The cryptocurrency reached a new all-time high of $124,496 last week before retreating slightly, trading at approximately $116,394.87 as of the latest data. The pullback came amid profit-taking and macroeconomic concerns, including higher-than-expected July wholesale inflation numbers that cast doubt on the likelihood of a Federal Reserve rate cut in September. Despite the dip, the broader crypto market has shown resilience, with major tokens like Ethereum also experiencing a slight decline but remaining near their record levels.

The price fluctuations were accompanied by significant liquidations across the crypto market, with over $500 million in forced selling of long positions within a 24-hour window. This included $124 million in long Bitcoin positions and $184 million in long Ethereum positions. The market’s response to profit-taking was exacerbated by statements from U.S. Treasury Secretary Scott Bessent, who indicated that President Donald Trump's strategic Bitcoin reserve will focus only on forfeited Bitcoin, signaling no immediate expansion of the reserve's holdings [1].

Analysts have pointed to the Bitcoin-to-Gold correlation as a potential indicator of future price movements. While Bitcoin is often referred to as "digital gold," the two assets have historically exhibited divergent behaviors. In 2017, the Bitcoin-to-Gold ratio reached an all-time high, followed by a sharp correction in Bitcoin’s price while gold remained relatively stable. However, during the onset of the 2020 pandemic, both assets experienced simultaneous downturns, hinting at a rare moment of correlation in response to macroeconomic stress. More recently, the Bitcoin-to-Gold ratio has tested its 2017 highs but failed to break through, indicating resistance and highlighting gold’s continued dominance in uncertain markets [5].

The current Bitcoin market environment appears to be entering a consolidation phase, with many traders adopting a wait-and-watch approach ahead of key macroeconomic events. Bitcoin’s Market Value to Realized Value (MVRV) ratio currently stands at +21%, according to Santiment, signaling a mild overvaluation and increasing the likelihood of profit-taking. This is not an extreme reading but suggests that average investors have been profitable over the past year and may now be inclined to take gains. Meanwhile, whale activity has continued unabated, with wallets holding between 10 and 10,000 Bitcoin aggressively accumulating, even after the recent all-time high [2].

Looking ahead, the Federal Reserve’s policy decisions will play a pivotal role in shaping Bitcoin’s next move. The central bank’s rate cut on September 17 is widely anticipated, with 83.6% of market participants expecting the cut, according to the CME FedWatch Tool. A dovish stance from Federal Reserve Chair Jerome Powell during the Jackson Hole Economic Symposium could provide the catalyst needed to reinvigorate bullish sentiment in the crypto market. Analysts at Bitunix suggest that if Powell adopts a “wait-and-see” approach, Bitcoin could consolidate between $115,000 and $120,000, with a breakdown potentially exposing support at $112,000 [3].

On the data side, Bitcoin ETFs and institutional adoption have remained strong pillars of support, despite the recent pullback. Over the past week, ETFs tracking Bitcoin and Ethereum recorded net inflows of $547 million and $2.9 billion, respectively, marking a record week for Ethereum inflows and the 14th consecutive week of inflows. This continued accumulation by institutional investors suggests a long-term bullish bias, even in the face of short-term volatility.

While the immediate outlook for Bitcoin appears to be one of consolidation, the broader narrative of its potential 10x surge hinges on whether it can replicate the performance trajectory of gold. Gold’s historical role as a store of value and its resilience during times of economic uncertainty provide a compelling case for Bitcoin to follow a similar path—if it can overcome its inherent volatility and gain broader macroeconomic acceptance [4].

Source:

[1] https://www.cnbc.com/2025/08/18/crypto-market-today.html

[2] https://cointelegraph.com/news/bitcoin-price-danger-zone-consolidation-profit-takers-analysts

[3] https://finance.yahoo.com/news/bitcoin-ethereum-slip-as-crypto-markets-pull-back-after-hitting-2025-highs-155818704.html

[4] https://newhedge.io/bitcoin/gold-correlation

[5] https://goldprice.org/cryptocurrency-price/bitcoin-gold-price