The correction in gold prices may allow Bitcoin to target the $100,000 level again.
In recent weeks, while the price of gold reached historical peaks and experienced a decline of nearly 10%, Bitcoin (BTC) showed an increase of around 10% during the same period, reaching the $97,000 level again.
In early April, following the Liberation Day tariffs implemented by U.S. President Donald Trump, gold prices rose rapidly, peaking at $3,500 per ounce on April 21. During this period, Bitcoin was at around $87,000 and was approximately 20% away from its peak seen in January. However, recent developments have brought the relationship between gold and Bitcoin back into focus.
Standard Chartered analyst Geoff Kendrick stated that Bitcoin provides better protection than gold against uncertainties stemming from the U.S. in investors' strategic asset allocations. Kendrick noted that there has been a significant change in ETF flows recently, indicating that capital entering investment funds has been shifting from gold ETFs to Bitcoin ETFs.
Critical change in ETF flows
Since last week, four different days have observed reversed flows between gold and Bitcoin ETFs. Funds entering Bitcoin ETFs have shown a marked increase compared to gold funds. According to Kendrick, such a strong influx in favor of Bitcoin in ETF funds was last seen during the U.S. presidential election week, after which the price of Bitcoin rose by more than 40% within two months, surpassing $100,000.
The recent relationship between gold and Bitcoin shows that investors are rapidly changing their asset preferences according to market conditions. The correction in gold is increasing the shift towards Bitcoin, indicating that new opportunities may emerge for cryptocurrency investors.