Despite sharing similar macroeconomic drivers, gold and bitcoin have been moving in opposite directions in recent weeks.

Gold has continued to post near-record highs on a daily basis, while bitcoin (BTC $109,350) has struggled to mount a sustained rally despite favorable conditions such as easing monetary policy, ETF inflows, and growing corporate adoption.

The current divergence suggests that bitcoin may struggle to enter a new upswing until the gold market experiences a cooling period. Indeed, Wednesday’s session saw gold drop 1.5% to $3,759 per ounce, allowing bitcoin to climb 1.7% to $113,700, marking a rare positive day for the digital asset.

Long-Term Trends Remain Aligned

While short-term movements show a divergence, the broader trend indicates both assets generally move in the same direction as hedges against inflation and excessive government spending.

• Year-to-date: Gold is up 42%, outpacing bitcoin’s 22%, but both showing positive performance.
• Since 2024 start: Gold has gained 82%, while bitcoin rose 155%.
• Since 2023 start: Gold has more than doubled, and bitcoin has surged more than sixfold, recovering strongly from the lows of the 2022 crypto winter.

Analysts note that while gold may dominate in the short term, bitcoin’s long-term trajectory remains bullish, with both assets benefiting from macroeconomic tailwinds.