Gold prices have come within a few dollars of a milestone all-time high of $4,000 as investors escape to safe-haven assets — a trend that also looks bullish for Bitcoin.
Prices for futures for gold tapped $4,000 per ounce for the first time early on Tuesday morning, while spot prices reached an all-time high of $3,976, according to TradingView.
“Gold is at a new record high,” observed goldbug and Bitcoin critic Peter Schiff on Tuesday. “This is a clear warning that current Fed policy is wrong,” he added as he called for the US central bank to “reverse course immediately,” and raise interest rates.
Gold has had a stellar run this year, surging more than 50% since Jan. 1 amid escalating geopolitical tensions, trade tariff concerns, global inflation, and the debasement of fiat currencies.
It has outperformed Bitcoin (BTC) over the same period, with the world’s premier digital asset gaining just 33.5%. However, Bitcoin prices have followed gold, albeit with a lag, which could bode well for a massive end-of-year rally.
Bitcoin will outperform gold, analysts say
“Gold’s all-time high shows investors’ demand for scarce assets. From here, we believe Bitcoin will be the better-performing asset of the two,” Apollo Capital’s Henrik Andersson told Cointelegraph on Tuesday.
“Gold hitting $4K is just another confirmation of the same dynamic supporting BTC,” added Justin d’Anethan, head of partnerships at crypto private markets firm Arctic Digital.
Related: Bitcoin will ‘blast through’ to its next leg at $150K: Analysts
The move is more of a “mutual confirmation,” with both assets reacting to the same concerns: unchecked US deficits, softening dollar credibility, and rising geopolitical hedging, he said before adding:
“Gold is familiar and deeply rooted in traditional finance setups. Bitcoin moves bigger because it’s available 24/7, scarcer, and admittedly more forward-looking.”
Bitcoin’s correlation with gold
Bitcoin is lagging gold and the global M2 money supply, and “should adjust,” said analyst James Bull on X.
Last week, analyst and trader Ted Pillows said Bitcoin has been highly correlated with gold with an eight-week lag.
With gold hitting new highs, Bitcoin will follow, he said, adding, “Maybe we could see another correction, but overall Q4 will be big for Bitcoin.”
Last week, Cointelegraph reported that Bitcoin had resumed its correlation with gold, as both were nearing or had reached all-time highs. Bitcoin hit an all-time high of just over $126,000 during late trading on Monday.
Bitcoin to seven figures
Litespark co-founder and CEO, and former head of PayPal, David Marcus, compared the two assets, saying on Monday that if Bitcoin were valued like gold, it would be worth $1.3 million.
“It’s already a better store of value, and its payments utility isn’t priced in yet. Crossing into seven digits is only a matter of time.”
Magazine: Bitcoin may move ‘very quick’ to $150K, altseason doubts: Hodler’s Digest
