Bitcoin (BTC) is gaining ground on gold (XAU) once again, as easing U.S.-China trade tensions inject fresh optimism into global markets and shift investor appetite toward risk assets.

Over the last two weeks, Bitcoin has surged nearly 19% to $104,000, outpacing gold, which has slipped over 8% to $3,211 after peaking above $3,500 on April 22. The divergence comes amid a changing macro environment that favors digital assets over traditional safe havens.

At the heart of this momentum is a bullish breakout in the bitcoin-to-gold ratio—a metric that tracks the performance of BTC relative to gold in U.S. dollar terms. The ratio recently completed an inverse head-and-shoulders pattern, a technical formation that often marks the end of a downtrend and the start of a new upward phase.

Following the breakout, the ratio has climbed to 32.00, and analysts now see a move toward 35.00 as likely. The projection is based on the classic charting method of measuring the pattern’s depth and adding it to the breakout point.

“The technical structure clearly favors continued bitcoin outperformance,” said a market strategist familiar with the setup. “It suggests a shift in capital allocation away from defensive assets like gold and into high-beta plays like crypto.”

Monday’s announcement of a tariff rollback between the U.S. and China provided additional tailwinds. In a joint statement from Geneva, both countries agreed to reduce tariffs significantly: China will cut duties on U.S. goods from 125% to 10% for 90 days, while the U.S. will lower its tariffs on Chinese imports from 145% to 30%.

“The move signals a thaw in U.S.-China relations and boosts investor sentiment globally,” said Mena Theodorou, co-founder of Coinstash. “With renewed confidence, we’re seeing capital rotate into risk assets, and crypto stands to benefit disproportionately.”

She added that the improved trade outlook coincides with other macro catalysts: the U.S. recently signed trade agreements with both China and the U.K., and a high-level meeting between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelensky is set for Thursday to discuss a potential ceasefire.

With gold weakening and risk appetite rebounding, the setup appears ripe for Bitcoin to extend its bullish trajectory and further cement its role as a high-performing macro asset.