Bitcoin Gold Correlation Back in Action! Will the BTC Rise Continue? Here Are the Details
Gold futures are nearing a record high, reaching $4,000 per ounce, fueled by rising demand for safe-haven assets. Analysts say this upward trend could also be a strong bullish signal for Bitcoin (BTC).
Gold Hits $4,000: What Does It Mean for Bitcoin?
According to TradingView data, gold futures touched $4,000 on Tuesday morning, while spot prices reached an all-time high of $3,976. Gold has reportedly gained over 50% since the beginning of the year. Geopolitical tensions, global inflation, and a weakening dollar have all contributed to this rise.
Renowned economist and Bitcoin critic Peter Schiff called for an interest rate hike, saying, “Gold hit a new record, which shows that the Fed’s policy is flawed.”
However, analysts agree that gold’s strong performance is also a positive indicator for Bitcoin. “Investors are moving into scarce assets,” said Apollo Capital manager Henrik Andersson. “We expect Bitcoin to outperform gold from here on out.”
Justin d’Anethan of Arctic Digital noted that both assets respond to the same economic concerns, but Bitcoin is more “dynamic and forward-looking.”
Analysts say there’s a roughly eight-week lag between gold and Bitcoin’s price movements, suggesting a strong rally in Bitcoin could occur towards the end of the year after gold reaches a record high.
Some market experts predict that Bitcoin’s value could reach $1.3 million in a scenario where it is priced on the same scale as gold.
*This is not investment advice.