Cryptocurrency
Is bitcoin “digital gold”?

There is no consensus yet on whether bitcoin is a protective or speculative asset. Few investors and institutions invest capital in the first cryptocurrency for protection against inflation. Studies of the correlation between bitcoin and various asset classes show that it behaves differently in different market situations.
Why is bitcoin not recognized as digital gold?
The main function of gold as an investment asset is its ability to maintain and increase its value during crises. When there is a prolonged period of recession in the economy, investors sell high-risk assets – which include stocks, for example – and buy means of preserving value, particularly gold.
Since the launch of the cryptocurrency’s main network, its price has risen consistently from year to year. But over shorter periods, bitcoin is a volatile asset. This makes it akin to high-risk assets.
Various researchers have repeatedly found correlations between bitcoin and the stock market. In April 2022, Arcane Research said the movement of the first cryptocurrency was closest to tech stocks, which are considered a riskier segment of the stock market.
A few months before that, analysts at Goldman Sachs had warned that bitcoin’s price depended on macroeconomic factors and that its value could fall due to a tightening of Fed policy. That is exactly what happened later.
According to Bank of America, since 2021, the price of the first cryptocurrency has correlated with the stock market. As an example, the bank researchers cited the correlation with the key stock indices – S&P 500 and Nasdaq 100. Therefore, bitcoin is not a defensive asset, the bank believes.
What are the arguments for the digital gold thesis?
There are also arguments that speak in favor of bitcoin as a store of value. First, bitcoin’s protective properties have been talked about by prominent investors. The thesis of “digital gold” in 2021 was supported by American financier Ray Dalio, although he later noted that the first cryptocurrency lost out to gold.
In April 2022, former BitMEX chief Arthur Hayes opined that bitcoin would eventually become a defensive asset because of Fed policies and the depreciation of the dollar.
Second, a study by ForkLog found that during the 2020 crisis, the first cryptocurrency correlated mostly with the precious metal.
Third, bitcoin can change its correlation with different asset classes depending on market conditions. The view that the value of the first cryptocurrency is starting to coincide in behavior with risky assets during market declines was expressed in 2020 by The Block researcher Larry Chermack.
Another pro argument is the actual use of bitcoin as digital gold. Despite its high volatility, a lot of large companies already hold savings in the first cryptocurrency. According to the Bitcoin Treasuries website, Tesla, Core Scientific and Square are among them.
One of the main proponents of bitcoin as a protective asset is MicroStrategy CEO Michael Saylor – his company owns almost 130,000 BTC.
Also, bitcoin is already being used in government reserves. Since 2021, the government of El Salvador has been buying bitcoin for its treasury.
JPMorgan believes that bitcoin has the potential to become digital gold due to its acceptance among institutional investors. but the first cryptocurrency’s dependence on inflation holds it back from achieving this goal.
Cryptocurrency
Spot Markets Drive Bitcoin to $106K as Coinbase Sees $45M Daily Buying Pressure: Glassnode

Bitcoin’s surge to $106,000 earlier this week has been primarily driven by robust spot market demand, with Coinbase seeing net buying pressure of $45 million per day, according to Glassnode’s latest report.
The rally, which began after the king cryptocurrency dipped to just below $75,000 in early April, has been marked by strong accumulation phases, exchange-traded fund (ETF) inflows, and a cooling of sell-side pressure, pointing to sustained bullish momentum despite recent profit-taking by long-term holders.
Spot Demand Outpaces Derivatives
Unlike previous rallies fueled by leveraged speculation, this latest uptrend has been characterized by organic sport market accumulation.
According to the Glassnode report, BTC changed hands heavily in the $93,000 to $95,000 range, which is now acting as a key support level as it coincides with the cost basis of traders who entered the market within the last 155 days.
The price has respected this range amid sideways accumulation, reinforcing the “stair-stepping” structure visible on the Cost Basis Distribution heatmap.
Meanwhile, derivatives markets lagged, with perpetual futures open interest dropping 10%, from 370,000 BTC to 336,000 BTC, possibly indicating a substantial short squeeze as bears were flushed out.
However, funding rates remain neutral, reflecting a lack of excessive long-side leverage, something which Glassnode’s experts believe is a sign the rally could have more room to run.
Spot Bitcoin ETF inflows also played an important role, peaking at $389 million on April 25 before tapering to around $58 million per day. Coinbase, a preferred exchange for U.S. institutional investors, recorded consistent buying. At the same time, the sell pressure on its global counterpart, Binance, eased from $71 million per day in March to just $9 million, suggesting investors were actively buying the dip.
Long-Term Holders Cash In, But Demand Remains Strong
Despite the rally, long-term Bitcoin holders have started taking profits, as CryptoQuant analyst Avocado Onchain noted in a May 15 report.
According to them, the Binary Coin Days Destroyed (CDD) metric, which tracks dormant coins being moved, has risen to 0.6. While it shows these holders are offloading dormant BTC for profit, the metric has not reached the 0.8 zone seen during previous bull market highs.
Glassnode’s own data corroborates this trend, showing that short-term holder (STH) realized profits are spiking to nearly +3 standard deviations above the 90-day average. However, the analytics firm cautioned that profit-taking has not yet reached exhaustion levels, since in past rallies, higher deviations closer to +5 were needed to deplete demand and mark local tops.
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Cryptocurrency
XRP Has to Break Out of This Range Before Challenging $3: Ripple Price Analysis

Ripple has reached a decisive price range of $2.3-$2.5, with an impending breakout determining the upcoming trend. A bullish breakout will pave the way for a sustained rally toward the $3.1 range.
XRP Analysis
The Daily Chart
XRP’s recent bullish trend has been halted at the upper boundary of a prolonged descending wedge near the $2.7 level, triggering a bearish retracement. However, the price is now consolidating within a decisive and tight range between $2.3 and $2.5, bounded by the wedge’s apex. This zone has become a critical battleground between buyers and sellers.
The current pullback may also be interpreted as a retest of the recently broken 100 and 200-day moving averages, which could reintroduce demand into the market. A breakout from this narrow range appears imminent, and the direction of this breakout will likely determine XRP’s next major move. A bullish breakout above $2.5 would open the door for a sustained rally toward the $3.1 resistance area.
The 4-Hour Chart
On the lower timeframe, Ripple has maintained a broader bullish structure in recent days, breaking out above the descending wedge pattern. However, the asset faced significant selling pressure around the $2.7 resistance and was swiftly rejected, falling back into the wedge formation. This movement suggests a potential bull trap and false breakout.
Currently, XRP is holding above the key support at $2.3, where buying interest could reemerge. If this level holds, a renewed bullish push toward the $2.7 zone is likely. Still, the market is awaiting a decisive breakout from the $2.3–$2.5 consolidation range.
If the breakout is bullish, the price could quickly surge toward the $3.1 resistance. Conversely, a breakdown below $2.3 might trigger a sharp decline toward the $2 support, especially if accompanied by a short-squeeze or panic selling from overleveraged long positions.
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.
Cryptocurrency
Ethereum Price Analysis: Can ETH Continue its Run as Major Resistance Levels Approach?

Ethereum has experienced a strong upward rally over the past two weeks, pushing from the $1,500s to above $2,600. However, signs of exhaustion are beginning to surface. While higher timeframes remain bullish for now, short-term caution is warranted.
Technical Analysis
By ShayanMarkets
The Daily Chart
ETH has hit a technical ceiling just under the $2,900 resistance, which aligns closely with the 200-day moving average. This zone previously acted as a major breakdown point in February and is now serving as a supply area. The RSI also recently entered overbought territory, suggesting that momentum is fading as price approaches this resistance.
A rejection from here could lead to a pullback toward the $2,200 support zone and the 100-day MA located near the $2,100 mark. A confirmed breakout above $2,900 would shift the bias back to bullish, with a potential continuation toward the critical $4,000 zone.
The 4-Hour Chart
Dropping lower on the 4-hour timeframe, Ethereum is showing signs of weakening momentum. After the explosive move above $2,100, the price has been consolidating within a narrow range near the $2,500–$2,600 region.
A clear bearish divergence is now confirmed on the RSI, with price making higher highs while RSI makes lower highs. This typically indicates a potential correction ahead. If ETH loses the $2,450 support, a retracement toward $2,200 and even $2,050 becomes likely. On the flip side, reclaiming $2,600 with strong volume could invalidate the bearish signals and open the path for a run at the $3,000 area.
Sentiment Analysis
The recent rally triggered a sharp wave of short liquidations, which helped fuel the aggressive price surge. As seen in the short liquidation chart, the largest liquidations occurred near $2,400–$2,600, signaling a large portion of sellers were forced out of the market. This typically leads to short-term cooling, as the “fuel” for the rally gets exhausted.
The liquidation chart shows a clear uptick in forced closures over the past week, aligning with Ethereum’s breakout. These spikes often mark local tops, as the removal of excessive short exposure removes the momentum driver. With liquidations now tapering off, the price may struggle to push higher without fresh demand entering the market. This context reinforces the idea that ETH could consolidate or correct before any meaningful continuation.
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.
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