In an impressive convergence rarely seen in financial markets, both gold and Bitcoin (BTC) are rising together, indicating the convergence of the safe hull narrative amid rising economic uncertainty and weakening of the US dollar.
According to an analysis by Kobeissi Letter, Gold has hit a record high of 55 in the last 12 months, and recently reached a new record high of $3,384 per ounce. Meanwhile, Bitcoin has officially attended the rally, and has secured BTC in place, at over $87,000, as a store worthy of its value alongside investor sentiment money.
This parallel movement marks an unusual moment in modern financial history, where traditional and digital assets, considered “safe shelters,” have climbed together. The rise comes from growing speculation that the US Federal Reserve will cut interest rates and increase geopolitical and economic uncertainty.
Gold-backed digital tokens are also taking renewed interest in the crypto space. Pax Gold (Paxg) and Tether Gold (Xaut) are each pegged to 1 ounce of gold, with daily trading volumes exceeding $100 million in the last few weeks. These tokenized assets combine the stability of precious metals with accessibility of the crypto market, providing investors with blockchain-based gold exposure.
Enmanuel Cardozo, a market analyst at Brickken, an asset tokenization platform, said Bitcoin has strong momentum, but investors remain cautious. “While Bitcoin has shown resilience, I think past experience, current economic uncertainty and market sales pressures keep investors on the sidelines and await a clearer entry signal,” Cardozo says.
Cardozo also said recent institutional involvement, including strategies and tethers, could play a key role in Bitcoin's price trajectory, especially as the market caters to half the traditional four-year cycle. “Fed rate reductions in May or June can inject more money into the system and send Bitcoin faster,” Cardozo added.
*This is not investment advice.
