As global stock markets continue to face downward pressure, Bitcoin (BTC) has surged past the $88,000 mark, while gold has soared to unprecedented levels, reaching an all-time high. This dual surge highlights the growing appeal of alternative assets in times of economic uncertainty.
At the time of writing, Bitcoin is trading at $88,193, reflecting a 5% gain over the past week. This upward momentum has led analysts to speculate about a potential decoupling from traditional financial markets. Meanwhile, gold has broken records, trading at $3,415 per ounce.
According to data from crypto analytics platform Coinglass, more than $232 million in leveraged positions were liquidated over the past 24 hours, with the majority being short positions against Bitcoin. This suggests significant market volatility and a shift in trader sentiment.
Despite Bitcoin’s rally, the cryptocurrency remains nearly 20% below its all-time high of $110,000. However, TOM LEE, Chief Investment Officer of Fundstrat, expressed optimism in a recent CNBC interview, stating that Bitcoin is poised to catch up with gold as a non-dollar asset. “I think Bitcoin is going to catch up to gold,” Lee said. “With its previous high over $110,000, there’s significant room for growth.”
Longtime Bitcoin advocate and founder of Pomp Investments, ANTHONY POMPLIANO, echoed this sentiment, noting that historically, gold tends to lead Bitcoin in rallies before the cryptocurrency experiences a more volatile price expansion. “When gold runs, Bitcoin not only catches up but usually runs much harder,” Pompliano explained. “This higher volatility is a defining characteristic of Bitcoin’s market behavior.”
As investors navigate the current economic landscape, the performance of both Bitcoin and gold underscores their roles as hedges against market instability. Analysts will be closely monitoring whether Bitcoin can sustain its momentum and close the gap with its previous highs.
Sources: Coinglass, CNBC