Recent data suggests that Bitcoin may be poised to break its all-time high once the current gold rally subsides. Both gold and Bitcoin have seen significant inflows in recent weeks, but historical data shows that Bitcoin often surges once gold loses its upward momentum.
Gold and Bitcoin's Historical Relationship
In 2020, gold led the way with record highs in August, followed by a massive Bitcoin rally in December. The same pattern seems to be playing out now, as gold prices hit record highs above $2,700 while Bitcoin remains in consolidation. Traders are waiting for gold’s bullish momentum to ease, potentially opening the door for a stronger Bitcoin rally.Inflows into ETFs
Gold ETFs have seen over 1 million ounces of inflows in the past seven days, the largest since October 2022. Similarly, Bitcoin ETFs in the U.S. have seen $2 billion in inflows during the same period. Once the gold rally slows down, historical patterns suggest that Bitcoin could be next to break its previous highs.
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