Gold prices are hitting new records, recently topping $2,510, while Bitcoin, often compared to gold, has struggled, remaining roughly 15% below its March highs.
Bitcoin has been consolidating for nearly six months, contrasting with gold’s consistent upward trajectory. This pattern, where Bitcoin lags behind rising gold prices, has occurred several times over the past five years.
For instance, gold experienced a major increase from 2019 to 2020, only briefly disrupted by the COVID-19 pandemic, while Bitcoin showed little movement.
In late 2020, after gold’s rally waned, Bitcoin surged. A similar trend was seen from March to May 2021, with gold rising while Bitcoin stagnated before dropping following China’s mining ban.
The pattern reoccurred in early 2022, as gold advanced while Bitcoin remained stable, leading to declines in both assets.
These historical trends suggest that Bitcoin may break out of its current consolidation phase once gold’s rise subsides, potentially driven by changes in market sentiment and capital shifting between assets.
BlackRock CEO Larry Fink has expressed strong support for Bitcoin, affirming its legitimacy as a financial asset during a recent interview with CNBC.
The U.S. Securities and Exchange Commission (SEC) has authorized BlackRock to offer options trading on spot Bitcoin ETFs, marking a key milestone in expanding crypto investment products.
Crypto trader Michaël van de Poppe suggested that the Federal Reserve’s recent decision to cut interest rates by 50 basis points could positively influence the crypto market.
Recent data from CryptoQuant CEO Ki Young Ju reveals a dramatic 75% reduction in net short positions for CME Bitcoin futures over the last five months.