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For Bitcoin to Heat Up, Gold Needs to Cool Down
Gold's record-breaking pump could be signaling a new bitcoin surge.
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Bitcoin has been trading between $50,000 and $70,000 since April. Meanwhile, gold has surged over 20% this year, topping $2,700, hitting new records highs while silver has nearly hit $35, a 12-year high.
What’s the Scoop?
- Gold Leading the Way: Historical patterns show Bitcoin often follows gold, as seen in 2020 when gold set record highs in August, and Bitcoin took off in December.
- Record Gold Inflows: In the past week, gold ETFs accumulated more than 1 million ounces, primarily driven by SPDR Gold Shares. This surge is important as it is the highest seven day inflow since 2022.
- Bitcoin ETF Heating Up: U.S. Bitcoin ETFs also saw significant demand, with $2 billion in inflows over the same period, including $1.7 billion into the iShares Bitcoin Trust alone.
Bankless Take:
If history were to repeat itself, a pause in gold’s rally could set the stage for Bitcoin to take over. Whether this historical pattern will play out again is not 100%, as of now, gold demand remains strong and shows no signs of slowing down.