Gold Rally Needs to Pause for Bitcoin Price to Break All-Time High, Data Suggests
Gold has witnessed significant inflows into its ETF products, totaling over 1 million ounces in the past week, marking the highest amount since October 2022. Concurrently, U.S. bitcoin ETFs have seen inflows of $2 billion during the same period, with the iShares Bitcoin Trust accounting for a substantial portion. Historical trends suggest that bitcoin may only break its all-time high once gold's bullish momentum wanes, as seen in 2020 when gold rallied first, pushing bitcoin prices higher subsequently. Currently, bitcoin is trading between $50,000 and $70,000, while gold has surged over 20% this year, reaching new record highs above $2,700. This aligns with previous patterns where declines in gold led to increased demand for bitcoin. Despite these dynamics, gold shows no signs of slowing down at present, fueled by strong ETF inflows. Market participants remain optimistic about potential price surges following the U.S. elections, particularly as both gold and bitcoin ETFs continue to attract record inflows.
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