While it may have been the blow-off top of gold prices last week, it appears to have benefited Bitcoin (BTC), and that trend could be set to continue.
Already one of the most performant global assets in recent months, Gold’s rally has reached new heights in weeks following the tariffs on the day of President Trump’s release in early April.
The price finally exceeded $3,500 per ounce on April 21st, with Bitcoin changing hands at $87,000 at the time. This has remained almost flat since release date, but fell by around 20% from its record high hit in January.
However, gold fell nearly 10% to its current price, just over $3,200 per ounce. At the same time, Bitcoin won around 10%, reaching a two-month high of $97,000.
“I think Bitcoin is a better hedge than gold on reallocating strategic assets from the US,” said Jeff Kendrick of Standard Chartered.
Kendrick noted that ETF inflows have been overturned along with prices.
Furthermore, the last time Bitcoin ETF inflows had a greater margin than gold was US presidential election week, Kendrick said. Two months later, Bitcoin prices rose more than 40% to over $100,000.