Recent analysis indicates that Bitcoin may present a more attractive investment opportunity than in 2017, particularly as its valuation against gold has hit a record low. This development comes as traders anticipate a recovery in BTC prices, potentially beginning as early as February.
On Saturday, Bitcoin”s value relative to gold reached its lowest point ever when adjusted for the global money supply. This metric, which signals when Bitcoin is either undervalued or overvalued against gold, has entered a territory historically associated with market bottoms for BTC.
The last occasion this metric fell to similar levels was in 2015, a period that preceded an astonishing 11,800% price surge as Bitcoin escalated from approximately $165 to $20,000 over two years. Analyst Michaël van de Poppe echoed sentiments from various analysts predicting a capital rotation from gold to Bitcoin this year.
While gold prices have doubled in the past year, Bitcoin has experienced a decline of 18% during the same timeframe. Some analysts caution that Bitcoin”s downward trend might persist longer than anticipated, suggesting that the anticipated shift from gold and silver into Bitcoin could be overly optimistic in the short term.
According to Citi, silver is likely to continue its upward trajectory in the coming months, driven by increased demand from China and a weakening U.S. dollar. Additionally, RBC Capital Markets indicated that even if precious metals maintain their strength, a swift transition to Bitcoin is improbable.
Despite January”s steep price drop for Bitcoin, on-chain metrics reveal that long-term holders are quietly accumulating more BTC. The supply held by these long-term holders, defined as those retaining Bitcoin for over 155 days, has started to recover amidst the January sell-off. Furthermore, the Long-Term Holder Spent Binary metric, which gauges whether long-term holders are selling or holding, has continued its decline.
Historically, an increase in long-term holder supply combined with a decrease in the spent metric has signaled the formation of sustainable BTC bottoms. A recent illustration of this trend occurred after the April 2025 lows, where a recovery in long-term holder supply preceded a significant rebound in Bitcoin”s price by about 60% within a month.
These insights suggest that patient investors are leveraging Bitcoin”s January price decline, potentially setting the stage for a stronger foundation for future gains.
This article does not constitute investment advice or recommendations. Every investment and trading decision carries inherent risks, and readers are encouraged to conduct their own research. Cointelegraph strives for accuracy and timeliness but does not guarantee the completeness or reliability of information provided.
