Bitcoin Moves Higher as Gold Momentum Slows

While gold and bitcoin share similar macroeconomic drivers, their short-term price action has diverged in recent weeks.

Gold has continued to hit near-record highs, whereas bitcoin (BTC $109,350) has struggled to sustain a meaningful rally, despite supportive factors including easing monetary policy, ETF inflows, and growing corporate adoption.

The divergence suggests that bitcoin may remain range-bound until gold experiences a pullback. On Wednesday, gold fell 1.5% to $3,759 per ounce, allowing bitcoin to climb 1.7% to $113,700, marking a rare positive session for the cryptocurrency.

Long-Term Trends Still Correlated

Over longer periods, both assets generally trend in the same direction, reflecting their shared role as hedges against inflation and excessive government spending.

• Year-to-date: Gold is up 42%, while bitcoin has gained 22%, showing aligned growth.
• Since early 2024: Gold has risen 82%, with bitcoin up 155%.
• Since early 2023: Gold has more than doubled, while bitcoin has surged more than sixfold, rebounding strongly from 2022 lows.