Why the price of gold is rising while Bitcoin is struggling

Gold has recently climbed to an all-time high of $4,376 per ounce, significantly outpacing Bitcoin's year-to-date performance, driven by renewed trade tensions, such as proposed US tariffs on China, which have revived demand for traditional hedges against currency and policy risk. Central bank accumulation and a shift away from the US dollar hegemony are further bolstering gold's appeal, evidenced by tokenized gold products on Ethereum doubling in market cap. Conversely, Bitcoin, once hailed as "digital gold," is struggling, experiencing price dips due to short-term panic selling triggered by these same macroeconomic shocks, causing market sentiment to swing into "Fear." However, some analysts suggest Bitcoin will ultimately benefit from its fixed supply and non-sovereign nature as confidence in traditional markets weakens, though it currently trades like a risk-on asset during initial macro shocks.

(Source：CryptoSlate)