Gold’s Adjustment Could Enhance Bitcoin

Last week’s surge in gold prices may have acted as a catalyst for bitcoin (BTC), and this momentum seems likely to persist.

Gold has seen significant gains in recent months, climbing to new levels following President Trump’s tariffs in early April.

The peak price reached over $3,500 per ounce on April 21, while bitcoin was trading around $87,000—essentially stable since the tariff announcement but about 20% lower than its all-time high from January.

Since then, however, gold has dropped nearly 10%, now sitting just above $3,200 per ounce. Meanwhile, bitcoin has experienced a 10% increase, rising to a two-month high of $97,000.

Geoff Kendrick from Standard Chartered remarked, “I believe bitcoin serves as a more effective hedge compared to gold regarding strategic asset reallocation away from the U.S.”

Kendrick observed that the influx of money into bitcoin-based funds has outpaced that into gold, reflecting a shift in investment preferences along with price changes.

He also pointed out that the last time bitcoin ETF inflows showed such a significant advantage over gold was during the U.S. presidential election week. Following that, two months later, bitcoin’s value had surged by over 40%, exceeding $100,000.