Last week, we observed unusual dynamics in the market: gold, which has been a fairly consistently expensive asset lately, began to decline in price, while Bitcoin, on the contrary, rose in price. This turned out to be an interesting turn, and many began discussing the implications this could have for the cryptocurrency and traditional asset markets.
Gold is traditionally seen as a "quiet corner" for investors during periods of economic instability. However, after President Trump announced new tariffs in early April, the price of gold rose sharply, reaching a record of $3,500 per ounce on April 21. At that time, Bitcoin was trading at around $87,000, which was not far from its all-time high, but 20% lower than in January of the same year.
However, gold has started to get cheaper in recent weeks, dropping 10% to just over $3,200 per ounce. While Bitcoin, on the contrary, strengthened and reached a two-month high of $ 97,000, an increase of about 10%.
Jeff Kendrick from Standard Chartered Bank noted an interesting trend. He is confident that Bitcoin can serve as a more reliable asset than gold, especially in the context of the redistribution of capital outside the United States. His analysis also suggests that in recent weeks there has been a significant increase in investment in Bitcoin ETFs, overtaking gold in popularity. Kendrick noted that such large capital flows into cryptocurrency were last seen on the eve of the US presidential election. And as we remember, Bitcoin showed impressive growth after that, exceeding 40% within two months.
So, perhaps the situation in the gold and cryptocurrency markets may be related. If gold continues to decline, this could be good news for Bitcoin, which seems to be becoming an increasingly attractive alternative for investors looking for assets with high growth potential.
I wonder if this trend will continue, and can we expect further growth of Bitcoin against the background of falling gold?
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