tl;dr
Commodity trader Peter Brandt notes that gold has been in a long-term downtrend against Bitcoin for over a decade. Recently, gold rallied to a two-week high of $3,407, driven by expectations of U.S. Federal Reserve rate cuts and rising trade tensions, reinforcing its role as a safe haven. Year-to-da...
Commodity trader Peter Brandt highlights that gold continues to struggle against Bitcoin in a long-term bear trend. His weekly chart analysis of the XAU/BTC ratio reveals that gold has been in a consistent downtrend versus Bitcoin for over ten years, signaling a shift in value preference among investors.
Despite this, gold has recently resumed its rally, climbing to a two-week high of $3,407. The surge is fueled primarily by increased expectations that the U.S. Federal Reserve will implement rate cuts within the year. Additionally, escalating trade tensions have further bolstered gold’s appeal as a safe haven asset. On April 22, gold reached an all-time high of $3,500 amid heavy U.S. tariffs, though it briefly lost momentum following a temporary easing of U.S.-China trade conflicts. Still, gold is seeing renewed buying interest, underscoring its role as a defensive asset.
Looking at year-to-date performance, gold has outpaced Bitcoin by gaining 29%, compared to Bitcoin’s 24% rise—even with several bullish factors supporting the cryptocurrency. Market analyst Mike McGlone pointed out that the Bloomberg Galaxy Crypto Index has barely kept pace with the S&P 500 this year, highlighting the relative weakness in crypto markets. On the other hand, Jurrien Timmer from Fidelity predicted Bitcoin would surpass gold’s gains in the second half of the year; however, Bitcoin’s YTD lead was brief and occurred only in July near its all-time high of $122,838.
This tug-of-war between gold and Bitcoin reflects broader trends in investor behavior amid economic uncertainties, monetary policy shifts, and geopolitical tensions. The question remains: will Bitcoin eventually overtake gold’s status as the preferred store of value, or will gold’s time-tested stability continue to hold sway? Investors should watch these dynamics closely as they weigh risks and opportunities in both asset classes.