Market Veteran Insists Capital Will Not Rotate from Bitcoin to Gold as Both Pull Back

Market veteran Benjamin Cowen insists Bitcoin will not receive any capital rotation from gold, as it typically drops whenever gold struggles.

The crypto market has faced another roadblock to the latest recovery effort that began on Feb. 28, with Bitcoin (BTC) eventually losing the pivotal $70,000 psychological level after reaching $76,000 earlier this week.

Interestingly, the ongoing pullback experienced by Bitcoin occurs alongside a price crash suffered by gold (XAU), the largest asset in the world. This adds weight to a long-standing belief held by Benjamin Cowen, who insists capital rotation will not flow from gold to Bitcoin.

Key Points

• Bitcoin has faced a roadblock to the latest recovery push, recently collapsing below $70,000, as it dropped 8.78% from the $76,000 peak earlier this week.
• The recent Bitcoin correction comes amid a similar turbulence in the gold market, as the precious metal crashes 8.54% this week alone.
• Cowen believes Bitcoin’s drop alongside gold’s market struggles confirms his theory that capital will not rotate from metals to Bitcoin.
• The market veteran’s suggestion contradicts the belief among Bitcoin enthusiasts that BTC could eventually rally after capital rotates from precious metals.
• Despite Bitcoin’s struggles, the crypto firstborn has begun gaining ground against gold after six consecutive weeks of declines.

Bitcoin Meets Roadblock Amid Latest Rebound

Cowen, who serves as the CEO of Into The Cryptoverse, discussed this amid Bitcoin’s latest pullback. For context, Bitcoin engineered its latest recovery campaign after initially collapsing in response to the escalation of the Israel-Iran conflict on Feb. 28.

Following a drop to $63,000, BTC rebounded almost immediately and maintained the uptrend until it faced its first roadblock at $74,000, corrected mildly, and then resumed the rally. After reaching $76,000 on March 17, Bitcoin has now corrected 8.54% from this peak, trading below $70,000.

Bitcoin’s Pullback Occurs Alongside Gold’s Crash

Benjamin Cowen pointed out that the latest Bitcoin pullback appears to be occurring alongside similar turbulence in the gold market. Citing this phenomenon, he reiterated his long-term belief that, for now, Bitcoin will not witness any capital rotation from gold.

For context, with Bitcoin dropping below $70,000, gold has extended a decline that began on the back of the Israel-Iran war, shattering its appeal as a safe haven for now. 

Specifically, gold has recorded two consecutive weeks of declines, and is on track to see a third one for the first time since last November. During this period, gold has collapsed 12.5%, losing the psychologically important $5,000 level, now trading for $4,616 per ounce. 

“No Rotation”

With gold correcting, crypto enthusiasts believe capital could rotate from the precious metal to Bitcoin, supporting Bitcoin’s price action, but that has not played out as expected. Amid this occurrence, Cowen called attention to a suggestion he made in late January, 

Notably, at the time, precious metals like gold and silver recorded impressive rallies, with gold reaching an all-time high of $5,597 on Jan. 29, and silver hitting a peak of $121 on the same day. Typically, after metals record such rallies and then pull back, capital often rotates into Bitcoin, giving the crypto market a boost.

While Bitcoin investors expected this phenomenon to occur when gold and silver correct, Cowen insisted that it may not play out this time. He pointed out at the time that just as capital did not rotate from Bitcoin to altcoins last year to kickstart the altcoin season, capital will also not rotate from metals to Bitcoin.

There was no rotation from BTC to ALTs.

Just like there will be no rotation from metals to crypto.

I do not make the rules.

— Benjamin Cowen (@intocryptoverse) January 28, 2026

This suggestion faced pushback from market enthusiasts, who argued that it would turn out wrong. Interestingly, a day later, when gold dropped 4%, BTC also collapsed 4%, and Cowen ensured to highlight this. Now, gold is struggling, and Bitcoin has joined in the turbulence, prompting another response from the market veteran.

Bitcoin Gaining Ground Against Gold

However, despite Bitcoin’s latest pullback, market data confirms it has indeed continued to gain ground against gold. After witnessing six consecutive weeks of declines against gold from January to February 2026, Bitcoin has flipped the trend, recording two consecutive weekly gains.

Up 4.32% against gold this week, Bitcoin is now on track to print the third consecutive bullish weekly close, as it recovers from 12 ounces of gold early this month to 15 at press time. However, BTC/XAU still faces potential resistance at the middle and higher Bollinger Bands stationed at 18 and 26, with the price still well below them.