Gold Nears ATH Again as Bitcoin Hits Historic Low—Rotation Ahead?
Gold is nearing its all-time high amid monetary uncertainty while Bitcoin suffers a sharp selloff, prompting analysts to watch for a potential asset rotation.Summary
Gold prices are approaching their October all-time high, trading near $4,305 per ounce, driven by investor flight to safety, central bank buying, and expectations of Federal Reserve rate cuts, which lower the opportunity cost of holding the non-yielding asset. Conversely, Bitcoin has sharply dropped to around $86,000, approximately 30% below its October peak, trading like a risk asset during this period of instability. This widening divergence has led analysts, including Michaël van de Poppe, to note that Bitcoin's Relative Strength Index against gold has hit a historically low level (<30) for only the fourth time, suggesting a potential turning point. While technical indicators suggest a rally for BTC/Gold, the current macroeconomic environment, marked by persistent inflation and geopolitical risks favoring gold, makes the extent of any potential rotation from gold to Bitcoin uncertain.
(Source：BeInCrypto)