Gold has been one of the best-performing global assets in recent months, reaching new highs in the weeks following President Trump's Liberation Day tariffs in early April.
The price peaked at $3,500 an ounce on April 21, with bitcoin priced at $87,000 at that time - nearly equal to Liberation Day, but about 20% lower than the record high reached in January.
However, since then, gold has dropped nearly 10% to its current price of just over $3,200 an ounce. At the same time, bitcoin has risen about 10% to a two-month high of $97,000.
Geoff Kendrick of Standard Chartered said: "I think bitcoin is a better hedge against risk than gold amid the strategic asset reallocation away from the United States."
Kendrick noted that ETF cash flow has reversed along with prices, with inflows into bitcoin funds increasing more sharply than inflows into gold funds.
Furthermore, Kendrick mentioned that the last time inflows into bitcoin ETFs were so much larger compared to gold was during the U.S. presidential election week. Two months later, the price of bitcoin had risen over 40% to above $100,000.
