Gold prices are nearing a significant all-time high of $4,000 as investors flock to safe-haven assets, a trend that is also seen as positive for Bitcoin.
Futures prices for gold touched $4,000 per ounce early Tuesday, while spot prices hit an unprecedented $3,976, as reported by TradingView.
“Gold has reached a new record high,” noted gold advocate and Bitcoin skeptic Peter Schiff on Tuesday. “This clearly indicates that current Fed policy is flawed,” he asserted, urging the US central bank to “immediately reverse course” and increase interest rates.
This year has been remarkable for gold, soaring over 50% since January 1 amid rising geopolitical tensions, trade tariff worries, global inflation, and the devaluation of fiat currencies.
Gold has outperformed Bitcoin (BTC) during this timeframe, with the leading digital currency rising just 33.5%. Nevertheless, Bitcoin’s prices have mirrored gold’s trajectory, albeit with a delay, signaling a potential massive rally as the year draws to a close.
Analysts predict Bitcoin will outshine gold
“Gold’s record high underscores investors’ appetite for scarce assets. We anticipate Bitcoin will outperformance among the two going forward,” stated Apollo Capital’s Henrik Andersson to Cointelegraph on Tuesday.
“Gold reaching $4K reaffirms the supportive dynamics for BTC,” added Justin d’Anethan, head of partnerships at crypto private markets firm Arctic Digital.
Related: Analysts say Bitcoin will “soar past” its next milestone at $150K
The current movements represent a “mutual confirmation,” with both assets responding to shared concerns: unsustainable US deficits, waning dollar credibility, and increasing geopolitical hedging, he remarked, adding:
“Gold is a staple in traditional finance systems. Bitcoin has larger movements since it’s available around the clock, scarcer, and outlook-focused.”
Bitcoin’s relationship with gold
Bitcoin is trailing behind gold and the global M2 money supply and “needs to catch up,” noted analyst James Bull on X.
Recently, analyst and trader Ted Pillows stated that Bitcoin has shown a significant correlation with gold but with an eight-week delay.
With gold reaching new heights, Bitcoin is expected to follow suit, he noted, adding, “We might see another correction, but Q4 looks promising for Bitcoin.”
Cointelegraph reported last week that Bitcoin had renewed its correlation with gold, as both approached or set new all-time highs. Bitcoin reached an all-time high of just over $126,000 during late trading on Monday.
Bitcoin reaching seven figures
Litespark co-founder and CEO, and former PayPal head, David Marcus, compared the two assets, stating on Monday that if Bitcoin matched gold’s valuation, it would stand at $1.3 million.
“It already acts as a superior store of value, and its utility in payments isn’t fully accounted for yet. Entering the seven-digit range is merely a matter of time.”
Magazine: Bitcoin may surge ‘rapidly’ to $150K, while altseason raises questions: Hodler’s Digest
