Gold prices climbed to another record high, extending the October rally that has made the precious metal the first asset in history to reach a $30 trillion market cap.
At the same time, Bitcoin, often dubbed “digital gold,” continued its decline, dropping more than 5% over the past 24 hours. Still, analysts suggest that the trend may soon reverse as gold approaches what could be a market peak.
Sponsored
Will Gold Prices Drop as the Market Enters a Euphoria Phase?
Market data showed that gold climbed to a record $4,380 per ounce today, reflecting heightened demand amid persistent inflation and global economic uncertainties. The surge has drawn retail investors en masse, with reports of long queues forming outside bullion dealers worldwide.
Yet, the rally has sparked cautions of an impending market top. Analyst bishara described scenes of physical gold buyers at new highs as a “macro top” signal.
From a technical perspective, Michaël van de Poppe likened the current chart to gold’s 1979-1980 bull run, during which the prices fell sharply after a peak. He noted that the market is in a euphoric stage, when excitement and fear of missing out (FOMO) drive prices unsustainably high.
Sponsored
Analysts Say Bitcoin Could Be the Next Big Winner as Gold’s Rally Peaks
As talk of a market top grows louder, several analysts agree that Bitcoin could emerge as the main beneficiary once gold’s momentum fades. Poppe explained that gold’s overheated environment could set the stage for a shift in capital flows toward Bitcoin, which he views as significantly undervalued compared to gold.
Meanwhile, Ash Crypto sees the current setup preceding the ‘biggest bull run’ as trillions enter the crypto market. He also pointed to BTC’s correlation with gold, noting that the former will soon follow the latter.
Sponsored
Merlijn The Trader observed that the global M2 money supply — a key indicator of liquidity — has been climbing sharply, coinciding with gold’s surge to record highs. Bitcoin, however, has remained largely stagnant in recent weeks.
Historically, when central banks inject liquidity into the financial system, capital often flows toward riskier assets such as cryptocurrencies. Merlijn suggested that this pattern could soon repeat, with Bitcoin poised to “catch up” to gold’s rally as excess liquidity drives investors back into higher-risk markets.
Sponsored
Yet, not everyone is convinced. Some skeptics, such as economist Peter Schiff, claim Bitcoin’s inability to overtake gold raises questions about its reputation as “digital gold.”
Schiff argued that the current global trend away from the dollar isn’t driving demand for Bitcoin but for gold, highlighting its weakness as a real alternative currency or store of value.
As both assets move in the opposite direction for now, the coming months will reveal whether Bitcoin can mirror gold’s explosive rallies or if their performance gap grows wider.
Source: https://beincrypto.com/gold-all-time-high-bitcoin-rally/
