Gold Outperforms the US Dollar and S&P 500 While Bitcoin Faces New Risks
Gold has been on a steady rise, beating the performance of the S&P 500 and ignoring the usual effects of a strong US dollar. Meanwhile, Bitcoin (BTC) is showing signs of potential risks, according to market analysts.
Bitcoin Could Follow Gold’s Path to a New All-Time High
Bitcoin, currently priced at $102,495, may take some time to reach new record highs, but analysts believe it will eventually follow gold’s upward trend. A well-known trading resource, The Kobeissi Letter, pointed out in a recent post on X (formerly Twitter) that gold's performance in 2025 is sending important signals about the market.
Gold’s Growth Defies Expectations
While Bitcoin's price movement has been somewhat stagnant due to the lack of strong market trends, gold is showing significant strength. Data from CRYPTO INSIDER Markets Pro and TradingView reveals that:
Bitcoin (BTC/USD) has gained 10% so far in 2024.
Gold (XAU/USD) has gained about 5% this year but had a 20% increase in 2024 overall.
Despite volatility in global markets, including fears caused by the recent DeepSeek AI incident, gold has continued to rise steadily. Traditionally, gold and the US dollar have an inverse relationship—when one rises, the other falls. However, this time is different.
The Kobeissi Letter noted:
"Gold prices have moved straight up, even though volatility hit the S&P 500. Even with the US dollar reaching a new 52-week high and bond yields increasing, gold has continued to surge."
Normally, when the US dollar strengthens, gold prices drop. However, the opposite is happening, which is surprising analysts.
Bitcoin’s Connection to the US Dollar
For years, Bitcoin’s price movements have been closely watched in relation to the US Dollar Index (DXY). Many traders believe that Bitcoin will eventually react to gold’s performance.
Well-known crypto trader Michaël van de Poppe shared his thoughts on X, stating:
"Gold is about to hit a new all-time high. It’s only a matter of time before Bitcoin follows."
Bitcoin Needs a Strong Comeback
While Bitcoin’s price has been fluctuating, experts suggest that it needs a strong rebound to stay on track for future gains. The coming weeks will be crucial in determining how Bitcoin reacts to the changing market conditions, especially with gold setting new records.
Gold Surges Past Expectations While Bitcoin Awaits Its Turn
Gold is proving to be a strong performer, outpacing the S&P 500 and holding steady despite a strong US dollar. Meanwhile, Bitcoin faces uncertainty but could soon follow gold’s path to new all-time highs. Analysts believe that BTC’s movement is just a matter of time, with market trends favoring gold’s continued rise.
While Bitcoin’s price remains in limbo, the market is watching closely for its next big move. Will BTC break out and surge like gold? Stay updated with the latest crypto news and insights!