Gold bulls face make-or-break test as Bitcoin lags ‘parabolic’ rally

Gold and silver just hit fresh all-time highs as investors flee sovereign debt, and Bitwise research argues this “gold first, Bitcoin later” rotation could set up a delayed, parabolic BTC rally over the next 4–7 months.

Global precious metals markets reached unprecedented levels this week, with gold and silver breaking previous all-time highs, according to market data and industry analysts who suggest the performance may signal conditions for a potential Bitcoin rally.

Gold vs. Bitcoin rally debate continues into 2026

Gold crossed a psychological threshold per ounce, according to data from Gold Price, while silver surpassed a significant level, pushing its market capitalization to a record high for the first time. Industry experts are predicting possible further increases in gold prices.

The surge in hard assets reflects investor movement away from sovereign debt amid growing global macroeconomic uncertainty, according to market observers.

Bitcoin surpassed its highest level of the year during the same period, though its movement appeared more restrained compared to precious metals.

André Dragosch, head of research at Bitwise Europe, stated that gold prices serve as a leading indicator for the cryptocurrency market. Through statistical causality tests, Dragosch demonstrated that gold tends to anticipate Bitcoin’s movements with a lag of between four and seven months.

This “Gold to Bitcoin Rotation” pattern suggests that institutional capital moves to digital assets after initially taking refuge in gold, once risk appetite stabilizes, according to Dragosch’s analysis.

Analyst Sminston noted that while gold is in a phase of “parabolic price discovery,” Bitcoin is only in the early stages of a corresponding shift.

Matt Hougan, Chief Investment Officer at Bitwise, compared the current Bitcoin market to gold’s 2025 rally. Hougan explained that gold’s parabolic rally resulted from supply depletion after years of massive central bank purchases.

Since the launch of spot Bitcoin ETFs in the United States in January 2024, these instruments have purchased over 100 percent of new supply issued, according to Hougan. He stated that while the price has been restrained by sales from long-term holders, Bitcoin could undergo vertical revaluation once these sellers exhaust their holdings, similar to what occurred with gold.

Recent criminal investigations involving Federal Reserve top management have affected dollar stability, according to reports. Market analysts note that gold reacts immediately as a primary safe haven asset, while Bitcoin attracts capital after initial market shocks are absorbed.

On Deribit, traders are betting on high-strike calls for March and higher strikes in later months, according to options market data. Analysts point to short-term targets for Bitcoin substantially above current levels, should the historical correlation with gold persist. This would represent a percentage gain similar to silver’s performance, which historically tends to outperform gold in late stages of bullish physical commodities markets, according to market analysts.