Gold Rally Often Comes Before Bitcoin’s Big Move, According to Cathie Wood

Bitcoin, by contrast, is trading just below $70,000 after a period of sharp swings, leaving investors debating whether crypto is falling behind or simply consolidating.

While both assets are often grouped together as alternatives to fiat currencies, their price behavior in recent years tells a more nuanced story.

Cathie Wood: Gold and Bitcoin Don’t Move Together

According to Cathie Wood, Bitcoin and gold have shown surprisingly little overlap in their price movements. Since 2019, the correlation between the two has hovered around just 0.14, suggesting they tend to respond to different market forces despite similar narratives around scarcity and protection against inflation.

Wood also points to a recurring historical pattern – major gold rallies have often occurred before large Bitcoin advances, rather than alongside them. In past cycles, gold strength has acted as an early signal, with Bitcoin following later once risk appetite returned.

ETF Inflows Highlight Strong Gold Demand

Investor behavior appears to support that thesis. Holdings in the largest physically backed gold ETF, SPDR Gold Trust ($GLD), have risen to approximately 34.9 million troy ounces, the highest level since May 2022. Since June 2024, holdings have increased by around 8 million ounces, representing growth of roughly 30% in just a few months.

Across the broader market, gold and precious-metal ETFs attracted more than $4.3 billion in inflows in January alone, marking the eighth consecutive month of net buying. Gold miner ETFs also saw strong interest, pulling in about $3.6 billion – the largest inflow since at least 2009.

Bitcoin Consolidates as Gold Absorbs Defensive Capital

The contrast between the two assets is becoming increasingly visible. Gold is benefiting from defensive positioning tied to inflation risks, geopolitical tensions, and uncertainty around global monetary policy. Bitcoin, meanwhile, has struggled to reclaim momentum near its highs, even as long-term narratives around scarcity and adoption remain intact.

For some analysts, this divergence is not a warning sign but a familiar setup. If historical relationships repeat, sustained strength in gold could once again precede a renewed Bitcoin rally, rather than signal a lasting shift away from digital assets.

As gold continues to attract capital at a record pace, Bitcoin’s consolidation below $70,000 may prove less a sign of weakness and more a pause before the next phase of the cycle.

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