Bitcoin is still in a bearish phase, and investors prefer gold as a safe haven

According to CoinDesk, in the current risk averse environment, investors seem to prefer traditional safe haven assets over Bitcoin (BTC). CryptoQuant's data shows that the correlation between Bitcoin and gold has recently turned significantly negative, with gold hitting a new high of over $2500 per ounce, while Bitcoin is in a downward trend, currently down more than 20% from its historical high of $73000 in March.

CryptoQuant's bull bear market cycle indicator has been in a bear market phase since August 27th, when Bitcoin was trading at $62000.

In addition, the Market Value to Realized Value Ratio (MVRV) has been consistently below its 365 day moving average since August 26th, indicating the possibility of further price corrections. CryptoQuant pointed out that the MVRV ratio falling below the moving average was a precursor to the 36% drop in Bitcoin prices in May 2021.

The decline in Bitcoin prices is also accompanied by a decrease in the US dollar index, which is another indicator of market risk aversion and uncertainty.