Benjamin Cowen explains that gold remains in a long-term uptrend despite a recent correction. His view is that macro conditions favor gold over risk assets like Bitcoin in the current phase.
Key Points
Key Highlights:
- Gold recently dropped around 25–30%, but similar corrections have happened in past bull markets before continuing higher
- Historically, gold bull runs are interrupted by recessions, but tend to recover and make new highs afterward
- Current price action resembles periods like the 1970s and 2000s, where short-term pullbacks did not end the long-term trend
- Gold continues to show strength compared to stocks, outperforming the S&P 500 in recent years
- Bitcoin is currently underperforming gold and approaching key resistance levels, similar to past bear phases
- The idea that Bitcoin won’t drop because it didn’t rise as much is weak, past markets show that smaller rallies can still lead to large declines
- Macro uncertainty and risk-off sentiment continue to favor assets like gold over crypto in the near term
Final Takeaway
Cowen remains bullish on gold long term, but cautious on Bitcoin. In the current environment, gold looks stronger, while Bitcoin may still face downside before a new cycle begins.
