Bitcoin News Today: Gold Surges 3.07% as Long-Term XAU BTC Trend Reverses

Gold has recently outperformed Bitcoin, sparking renewed interest in the long-term dynamics between the two assets. Peter Brandt, a veteran commodity trader with over four decades of experience, highlighted this trend through a weekly chart of the XAU/BTC pair, showing a consistent downward trajectory over more than a decade. This implies that gold has been losing value relative to Bitcoin for a prolonged period, yet recent price movements have reversed this narrative. On a particular day, gold surged 3.07% to reach $3,407, marking its highest level in two weeks [1].

Brandt’s analysis centers on the idea that gold is maintaining strength, particularly in a climate of macroeconomic uncertainty and expectations of U.S. Federal Reserve rate cuts. The rise in gold prices is also attributed to escalating trade tensions, which have historically supported the precious metal’s appeal as a safe-haven asset. For instance, after the U.S. announced new tariffs on April 22, gold hit a record high of $3,500, although the momentum later waned as tensions eased [1].

In contrast, Bitcoin’s performance over the same period has been mixed. While it experienced a significant peak in July—reaching $122,838—and briefly outperformed gold, its overall return since the beginning of the year remains at 24%. Gold, on the other hand, has posted a 29% increase over the same period. This divergence in returns has intensified the conversation around the relative merits of these two asset classes [1].

Bloomberg strategist Mike McGlone has adopted a cautious stance toward Bitcoin, noting that the Bloomberg Galaxy Crypto Index has matched the S&P 500’s performance this year, suggesting a potential weakening in the sector’s strength. Meanwhile, Fidelity’s Jurrien Timmer previously predicted that Bitcoin could surpass gold in the second half of the year, but Brandt’s long-term chart and the current momentum in gold suggest a close contest remains [1].

Brandt’s comments reflect a broader market sentiment favoring traditional assets over digital ones, especially in times of economic instability. Gold’s historical resilience and role as a hedge against inflation and currency devaluation continue to make it a preferred choice for institutional investors. While Bitcoin may appeal to speculative and retail investors, the preference for time-tested assets is evident in the current environment [1].

The evolving global monetary landscape is expected to continue shaping investment strategies, with tangible assets like gold retaining strong demand. Although Bitcoin remains a dynamic player in the financial ecosystem, the long-term narrative seems to favor gold as a store of value, particularly in bearish or inflationary conditions [1].

Source: [1] Bitcoin: News & Updates - Page 6 of 76 - CryptoDnes EN (https://cryptodnes.bg/en/tag/bitcoin/page/6/)