Bitcoin Shows Cheaper Data Signals, Analysts Eyeing Gold Rotation

Recent data suggests Bitcoin is more attractively priced than in 2017, with analysts observing potential shifts from gold and increased long-term holder accumulation.

New York, NY - January 31, 2026 - In a market landscape buzzing with activity, Bitcoin is currently presenting data points that suggest a more compelling valuation than seen back in 2017. This comes as analysts are increasingly scrutinizing the cryptocurrency's relationship with gold, noting signs of significant relative weakness that echo patterns observed at previous long-term market bottoms.

Bitcoin's Value Proposition Against Gold

Data emerging from Bitwise Europe indicates that the ratio of Bitcoin to gold has dipped to its lowest recorded level in January, even after adjusting for global money supply fluctuations. This metric, when adjusted for market conditions, has entered an extreme zone, historically associated with periods when Bitcoin was considered deeply undervalued. Similar readings were last observed in 2015, preceding a substantial multi-year recovery for Bitcoin. Michaël van de Poppe, a prominent analyst, commented, "Today represents a better opportunity to be buying Bitcoin than 2017," following the release of this data.

Potential Rotation from Gold to Bitcoin?

The divergence in performance between gold, which has seen its price double over the past year, and Bitcoin's decline during the same period, has prompted discussions about a potential capital rotation from gold into Bitcoin. While some traders are considering this shift, analysts emphasize that such rotations are contingent on market conditions and precise timing. André Dragosch of Bitwise Europe highlighted that Bitcoin often garners significant attention following periods of relative weakness. Pav Hundal of Swyftx suggested that this rotation might commence in February or March, though he cautioned that these movements do not adhere to strict schedules. Conversely, some analysts, like Benjamin Cowen, advise caution, suggesting that Bitcoin might continue to underperform broader markets and that a rapid shift from gold to Bitcoin may not be imminent.

Long-Term Holders Accumulating

On-chain data provides further insights, revealing that long-term Bitcoin holders have been increasing their supply during January's price dip. These holders, typically defined as those holding Bitcoin for over 155 days, often signal reduced selling pressure through their behavior. CheckOnChain data indicates a recovery in long-term holder supply, coupled with a decline in the Long-Term Holder Spent Binary indicator, suggesting fewer coins are being moved to exchanges. This pattern is consistent with previous market cycles where accumulation by long-term holders preceded price recoveries. Market watchers are observing these trends closely, as price reactions historically follow shifts in market behavior, supporting the notion that Bitcoin appears cheaper today than in 2017 based on available data.

Market Stress and Compression Dynamics

Meanwhile, other analyses point to a different narrative, where Bitcoin price recently dipped below a critical volatility band near $83,000 in late January 2026. On-chain data reveals a rapid spread of losses across holders, placing Bitcoin in a zone historically linked to heightened stress and late-stage corrections. The breakdown below the Gaussian Channel on the weekly chart suggests weakening momentum rather than an immediate capitulation, though broader market conditions remain fragile. Sentiment indicators show increased defensiveness, with growing expectations of deeper retracements. However, on-chain data, specifically the ratio of UTXOs in loss versus profit, has fallen to levels typical of late correction phases, indicating that selling pressure may diminish as fewer participants remain in profit. This environment suggests that Bitcoin's price action is increasingly shaped by compression, where fear is amplified, but the incentive to sell aggressively is reduced.

It's an interesting time in the crypto world, where data is painting a picture of potential opportunity amidst market choppiness. Keep an eye on those charts, folks!