Gold prices soared past $4,000 per ounce this week — a historic first — as geopolitical uncertainty and sticky inflation data reignited safe-haven demand. Meanwhile, Bitcoin (BTC) fell 3.5% to $62,800 as the U.S. Dollar Index (DXY) hit a two-month high, pressuring risk assets across global markets.
Gold’s Relentless Rally
Gold’s rally, up nearly 12% year-to-date, reflects both central bank accumulation and persistent investor anxiety about rate cuts being delayed. According to data from the World Gold Council, net central bank purchases topped 60 tons in September, with China and India leading the buying spree.
Bitcoin Under Pressure
While gold benefits from risk aversion, Bitcoin continues to behave like a risk asset. Its correlation to the Nasdaq 100 remains above 0.6, according to Kaiko Research, highlighting how macro trends outweigh crypto-specific catalysts. Traders report increasing outflows from Bitcoin ETFs, with over $250 million in redemptions last week.
Investor Behavior
Institutional investors appear to be rebalancing toward commodities, viewing gold as a stable inflation hedge while keeping crypto exposure light until monetary policy becomes clearer. “Gold is doing what Bitcoin was supposed to do — protect against uncertainty,” noted one fund strategist.
Forward Perspective
As long as the dollar maintains strength and U.S. yields stay elevated, gold’s allure may continue at the expense of Bitcoin’s risk appeal. Yet for long-term crypto advocates, this divergence could represent a rare entry point — assuming the digital asset market stabilizes once macro pressures ease.
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