The price of gold surged to a new all-time high of $3,357 per ounce on April 17, igniting speculation on whether Bitcoin (BTC) would follow. Bitcoin-gold comparison. Source: Cointelegraph/TradingView
In 2017, Bitcoin rallied to $19,120 after gold witnessed a 30% hike a few months earlier. Similarly, gold reached a new high near $2,075 in 2020 during the COVID-19 pandemic, which preceded Bitcoin’s surge to $69,000 in 2021.
Bitcoin has historically surpassed its previous all-time highs whenever gold rallies, reflecting a dynamic relationship between the two assets during periods of economic uncertainty and when investors look for a US dollar alternative.
Further highlighting the interconnections between the assets, Joe Consorti, head of growth at Theya, pointed out that BTC follows gold’s directional bias with a lag of 100-150 days at a time. Consorti said,
“When the printer roars to life, gold sniffs it