Between bitcoin and gold, war is declared. Which of the two will emerge victorious? Opinions differ. Analysts, however, point out an interesting correlation: when the yellow metal gains momentum, BTC tends to stagnate or even decline. This observation suggests that a slowdown in the gold rally could offer bitcoin the opportunity to reach new all-time highs.
Gold in the lead, but for how long?
For several months, the gold market sets recordspeaking at over $2,700 per ounce, an impressive increase of 37% this year. This renewed popularity is accompanied by significant investment flows: over a million ounces were injected into ETFs in just seven daysa first since October 2022.
This phenomenon is strangely reminiscent of the situation of 2020, when the precious metal led the way before giving way to the flagship cryptocurrency.
- Gold ETFs welcomed more than 1 million ounces in seven days;
- Gold price rises by 37% in 2024;
- The price of Bitcoin (BTC) has stagnated between $50,000 and $70,000 over the same period.
It is therefore legitimate to wonder if history will not repeat itself: Could a slowdown in gold herald an imminent explosion in BTC?
Bitcoin traders scrutinize the evolution of the yellow metal
For BTC traders, the performance of gold should be closely monitored. Indeed, the evidence shows that the two assets tend to move out of sync. While the price of bitcoin remains confined to a relatively wide range of $50,000 to $70,000, gold continues to seduce with significant inflows into ETFs, notably via the SPDR Gold Shares.
“ Until gold slows down, BTC could well stay behind », Estimates an analyst.
On the other hand, bitcoin ETFs also record encouraging numbers: $2 billion in net inflows in just one week. But the momentum still seems insufficient to counteract the euphoria surrounding the precious metal.
Speculation is rife, with some betting on a reversal after the American elections.
For the moment, gold benefits from multiple supports, including Iran-Israel tensions, which raise fears of increased volatility for bitcoin compared to the yellow metal.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
