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.
Bitcoin touched a new all-time high of $118,000, but what truly fueled the rally?
Robert Kiyosaki, author of Rich Dad Poor Dad, has revealed he bought more Bitcoin at $110,000 and is now positioning himself for what macro investor Raoul Pal calls the “Banana Zone” — the parabolic phase of the market cycle when FOMO takes over.
Spot Bitcoin ETFs recorded a massive influx of over $1 billion in a single day on Thursday, fueled by Bitcoin’s surge to a new all-time high above $118,000.
As Bitcoin breaks above $118,000, fresh macro and on-chain data suggest the rally may still be in its early innings.