Gold’s Rally Leaves Bitcoin Struggling for Momentum Amid Market Shifts

Gold and Bitcoin, often viewed as alternative assets and hedges against inflation, are showing very different performances in the current market cycle. Despite sharing similar bullish drivers — including looser monetary policy, inflows from exchange-traded funds (ETFs), and growing corporate adoption — the two assets have not been able to rally in unison.

Over the past several weeks, gold has repeatedly set new record highs, underscoring its role as a safe haven in uncertain times. In contrast, Bitcoin has struggled to break higher, even as it benefits from the same macroeconomic tailwinds. This divergence suggests that investors may only have the appetite to push one of these hedge assets higher at a time.

On Wednesday, the dynamic briefly shifted. Gold slipped 1.5% to $3,759 per ounce, marking a rare day in the red. At the same time, Bitcoin gained 1.7%, trading around $113,700. The move highlights how shifts in gold’s momentum could temporarily open the door for Bitcoin to catch a bid.

Despite these short-term divergences, the longer-term picture shows both assets generally moving in the same direction. Year-to-date, gold is up 42%, while Bitcoin has gained 22%. Looking back further, since the beginning of 2024, gold has advanced 82% compared to Bitcoin’s 155% surge. And since early 2023, gold has more than doubled, while Bitcoin has skyrocketed over six-fold, recovering strongly from the depths of the 2022 crypto winter.

Both assets remain key barometers of investor sentiment toward inflation, government debt, and fiat currency stability. While gold continues to dominate the spotlight with its record-setting rally, Bitcoin’s long-term growth suggests it still plays a critical role as digital gold, even if short-term moves remain tied to shifts in traditional safe-haven demand.