Bitcoin (BTC) has surged past $90,000 for the first time in nearly two months, driven by strong institutional inflows and growing political uncertainty in traditional markets. This rally, bolstered by substantial demand data, has led to a surge in Bitcoin ETF inflows, with the U.S. spot Bitcoin ETFs recording $381.4 million on Monday and $719.2 million on Tuesday—the highest single-day totals since January 2025. Additionally, MicroStrategy made a significant purchase of 6,556 BTC for $555.8 million, fueling further optimism among investors.
This move reflects a shift in investor sentiment, with Bitcoin increasingly viewed as a store of value amid rising market volatility. Political instability, notably President Trump’s recent criticism of Federal Reserve Chair Jerome Powell, has heightened fears of potential policy interference. These concerns pushed the U.S. Dollar Index to a three-year low of 97.923 and caused bond markets to react, with 10-year Treasury yields rising above 4.4%. As confidence in fiat and bond stability wavered, capital flowed into both Bitcoin and gold.
Although Trump’s comments on not firing Powell triggered a sharp drop in gold prices, Bitcoin remained resilient at higher levels. Additionally, the appointment of Paul Atkins as the new SEC Chair has further bolstered market sentiment. Atkins’ promise of regulatory clarity for digital assets and his support for innovation and less restrictive oversight has fueled optimism, especially concerning Bitcoin ETFs and decentralized finance (DeFi).
Bitcoin Outpaces Gold in Safe-Haven Demand
Despite both Bitcoin and gold being considered safe-haven assets, their trends have diverged in the current climate of political and economic uncertainty. While Bitcoin has surged above $90,000, gold, after reaching a high of $3,500, has corrected lower. This decline in gold prices comes as investors pivot towards Bitcoin, responding to easing expectations of rate cuts and continued inflows into digital assets. The shift marks a growing preference for digital assets over traditional safe-haven hedges amid volatile conditions.
Bitcoin-Gold Ratio Shifts in Favor of BTC
A key indicator of this shift is the Bitcoin-to-gold ratio, which has turned upward after correcting from the 40 level. This suggests that Bitcoin is gaining relative strength compared to gold and indicates that investors may be favoring Bitcoin as an alternative hedge. The appearance of an inverted head and shoulders pattern on the weekly chart signals that a break above the 40 ratio could trigger a strong Bitcoin rally, similar to the patterns seen in 2016 and 2020.
Additionally, the gold-to-Bitcoin ratio is showing a downward trend, forming a descending channel. Historically, when this ratio reaches the lower end of the channel, Bitcoin prices have bottomed out and started a significant upward surge. A break below 0.026 in this ratio could signal a major rally in Bitcoin, with gold typically following Bitcoin’s lead.
Bitcoin’s Bullish Momentum and Outlook
Bitcoin’s technical analysis points to continued bullish momentum. The weekly chart shows that Bitcoin has found support in the $65,000 to $75,000 range, followed by a strong upward surge. A bullish hammer pattern within this zone suggests a potential move towards the $105,000 to $115,000 target. The presence of a cup pattern within an ascending channel further supports the outlook for higher Bitcoin prices. Daily charts confirm this strong rally, with Bitcoin maintaining its position above the 50-day and 200-day simple moving averages (SMAs), reinforcing the possibility of continued upward movement.
Gold Faces Resistance at $3,500, Awaiting Breakout
Gold, on the other hand, is consolidating after a strong rally to $3,500. The weekly chart reveals that gold formed an inverted head and shoulders pattern before breaking the $2,075 pivot, triggering a bullish phase. Gold’s rally reached its current resistance level of $3,500, where it is now facing consolidation. To extend its gains, gold will need to break decisively above this resistance level, which may require further consolidation or a short-term correction. However, continued trade uncertainties and global market pressure could drive gold towards higher levels, with potential targets of $3,600 and $4,000 if the breakout above $3,500 materializes.
Conclusion
As Bitcoin reaches new heights, its growing role as a digital safe-haven asset becomes increasingly clear, particularly in light of political uncertainty and regulatory developments. Meanwhile, traditional assets like gold face challenges as investor preference shifts towards digital alternatives. With Bitcoin’s bullish momentum intact and gold facing resistance, the market appears poised for further divergence between these two assets in the coming months.
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