Bitcoin Gains Momentum as Gold Retreats from Record Highs

Bitcoin (BTC) is gaining ground as gold retreats from its recent peak, signaling a potential shift in investor sentiment. Last week’s gold surge — which may have marked a blow-off top — appears to have given bitcoin a boost, with the trend showing signs of continuing.

Gold soared to an all-time high above $3,500 per ounce on April 21, fueled by global uncertainty and President Trump’s Liberation Day tariffs in early April. Bitcoin, meanwhile, hovered around $87,000, flat since the tariff announcement and down roughly 20% from its January peak. Since then, however, the dynamic has flipped.

As gold prices dropped nearly 10% to just above $3,200, bitcoin surged 10% to reach a two-month high of $97,000. Standard Chartered’s Geoff Kendrick noted that ETF inflows have mirrored this reversal, with funds flowing into bitcoin now outpacing those into gold. This marks a sharp contrast from earlier this year when gold dominated ETF interest.

Kendrick emphasized bitcoin’s growing appeal as a hedge against strategic asset reallocation away from the U.S., positioning it as a stronger alternative to gold. He pointed out that the last time BTC ETF inflows significantly outpaced gold was during the U.S. presidential election. Within two months of that event, bitcoin rallied over 40%, breaking above the $100,000 mark.

With investor focus shifting toward digital assets, bitcoin’s strong performance and increasing institutional inflows suggest that it could continue benefiting from gold’s decline. As macroeconomic conditions evolve, bitcoin may further cement its status as a preferred hedge and high-performing global asset.