Undervalued Amid Gold Rally and Equity Gains

In Brief

• Bitcoin drops 15% as gold rises 21% since August 2025.
• Bitcoin ETFs see $523.98M inflows on November 11, 2025.
• Miner outflows reduce significantly, easing Bitcoin’s supply pressure.

Bitcoin’s performance has diverged significantly from traditional assets in recent months. While gold rose by 21%, Bitcoin saw a 15% decline since mid-August 2025. This decoupling marks a notable shift after four years of strong correlation between Bitcoin and equities. 

The S&P 500 increased by 7%, indicating a moderate rebound in traditional markets. Meanwhile, Bitcoin’s underperformance suggests that the market may be mispricing the asset, creating potential opportunities. This trend suggests Bitcoin is becoming undervalued, with lower-than-expected investor interest despite the rise of other assets like gold.

However, on November 11, 2025, Bitcoin ETFs witnessed a significant uptick, with $523.98M in net inflows. This surge contrasts with previous days, which saw minimal inflows, such as the $1.15M on November 10. 

The increase in ETF demand signals a potential rebound in investor sentiment toward Bitcoin. The rise in Bitcoin ETF inflows points to renewed interest in the digital asset, suggesting that investors could see it as a long-term opportunity despite the recent downturn. 

Additionally, miner outflows have sharply reduced since late October, easing supply pressure. On October 30, miner outflows reached 16K BTC, but by November 11, they had dropped to just 2.6K BTC. As fewer coins are being sent to exchanges, the downward pressure on Bitcoin’s price is subsiding, laying a foundation for possible price recovery.

Stable Liquidity Supports Market Confidence

The liquidity in the market remains robust, with total reserves holding strong near $120 billion. USDT reserves reached a record high of $42.8 billion, and Bitcoin holdings stayed solid at around 548,000 BTC. 

This substantial liquidity helps maintain stability in the market. Despite Bitcoin’s price fluctuations, this strong liquidity provides the necessary support to counteract significant price declines. 

With these factors in play, Bitcoin’s potential for a rebound is increasing, especially as supply pressures ease and investor interest begins to grow once again.