Last Saturday, Changpeng Zhao – better known as CZ, the former CEO of Binance – took to the social media platform X and posted a short but suggestive line: “I don't oppose gold, but it is not a limited supply asset.” This seemingly simple statement angered the 'gold bugs' community – those who have absolute faith in gold. Once again, the line between 'old money' and 'new money' has been boldly drawn.
CZ did not say anything more. He did not need to. The reason he has faith in Bitcoin remains the same: it has a limited supply of 21 million coins. Gold does not.
CZ's comments came at a time when gold prices were showing signs of running out of steam after a strong growth period. As of the end of Friday, spot gold prices fell by 0.4% to $3,228.50/ounce, bringing the total weekly decline to 2.6%. Previously, on April 22, gold had reached a new peak at $3,500.05/ounce, but by the following Thursday, it had fallen to its lowest level since April 14. US gold futures, although slightly up by 0.6% to $3,243.30, were not enough to reverse the downward trend.
Why is gold 'running out of steam'?
The main reason stems from the easing of US-China trade tensions. The Chinese Ministry of Commerce stated that the US has shown goodwill in negotiating tariffs, and Beijing is also ready for dialogue. As geopolitical fears subside, the demand for safe havens – such as gold – also decreases.
Daniel Pavilonis, a senior market strategist at RJO Futures, commented: “It seems that the $3,500 level could be the peak for gold in the short term,” especially if there are additional trade agreements and risk appetite returns to the market. When fear decreases, gold often loses its upward momentum. And that is exactly what is happening.
At the same time, the US jobs report showed that the number of non-farm jobs in the previous month increased by 177,000, much higher than the expectation of only 130,000. This result led investors to think that the US Federal Reserve (Fed) might not cut interest rates in June. The yield on 10-year US bonds rose – which makes gold less attractive because gold itself does not generate returns.
Not only gold, but the precious metals market is also affected. Silver decreased by 1.3% to $31.98/ounce. Platinum rose slightly by 0.1% to $959.20, while palladium increased by 0.6% to $946.18. However, all three are still in a weekly downtrend.
Bitcoin 'closes in' on gold.
When gold adjusts, Bitcoin quietly regains its position. Although since the beginning of the year, Bitcoin has only increased by less than 1%, it still outperforms the S&P 500 index – which has declined by more than 6%.
After hitting a yearly low on April 8, Bitcoin has surged about 20%. Although it is still lower than gold's 26% increase in 2025, this recovery is still noteworthy. In the battle between 'old money' and 'new money,' Bitcoin is closing the gap.
Of course, Peter Schiff – who is famously 'anti' Bitcoin – could not remain silent. He posted on X: “The recent price action shows that Bitcoin has not detached from NASDAQ and does not trade like gold as many claim.” He advises those worried about inflation to buy gold, not Bitcoin. “If you want to bet on NASDAQ, just buy tech stocks,” Peter emphasized, warning that falling government bond prices and a weakening dollar will increase borrowing costs, leading to rising debt.
Is Bitcoin no longer 'in sync' with gold?
The relationship between gold and Bitcoin was once very close during the 2020–2024 period. But by the end of March this year, that trend has reversed. According to CNBC, the rolling 25-week correlation coefficient between these two assets has fallen to -0.42, the lowest level since early 2020.
Although the recovery in April brought this index back to -0.28, it still shows that these two assets no longer share the same 'heartbeat.' With a coefficient of -0.42, this means that if gold increases by 1%, Bitcoin tends to decrease by 0.42%. A significant gap, especially when investors used to see them as similar safe havens.
Although both recovered in April, the data shows that this relationship is wavering. However, not everyone is pessimistic.
Geoff Kendrick – head of digital asset research at Standard Chartered – believes that Bitcoin is not really digital gold, but more like a larger tech stock. In a March report, he wrote: “Investors should view Bitcoin as a large tech stock complement and also as a hedge against traditional finance.”
Conclusion: While gold is affected by macroeconomic factors such as interest rate policies, geopolitical tensions, and market sentiment, Bitcoin is transforming, breaking away from old patterns and shaping a new role: both as a high-tech investment tool and as a symbol of resistance against the old financial system. The story between gold and Bitcoin is not over – but it has certainly entered a new chapter.
