Bitcoin (BTC) Price Action Tracks Surging Gold as “Digital Gold” Narrative Resurfaces

Surging gold prices and bitcoin's (BTC) relatively strong price action

Surging gold prices and bitcoin’s (BTC) relatively strong price action amid a global market sell-off have seen some traders revisit the latter’s role as “digital gold” — a big narrative in bitcoin’s early years but one that has lost steam in recent times.

BTC zoomed above $87,000 in Asian morning hours on Monday, with Cardano’s ADA, BNB Chain’s BNB, XRP and ether (ETH) adding as much as 1.5%. The spike reversed all declines since Thursday, with tokens such as Solana’s SOL up 5.2% in the past week.

The tariff-driven trade wars have sparked fears of inflation and currency devaluation, prompting comparisons of the asset to gold’s historical role as a hedge.

“Although bitcoin has had a close correlation with U.S. equities, it seems to be changing with a stronger tie to the rise of the price of gold, which has been a safe haven while equities have plummeted,” Nick Ruck, director at LVRG Research, told CoinDesk via Telegram on Monday.

“Bitcoin crossed $87,000 as a sign of renewed investor confidence as the market continues to stabilize after panicking over tariffs. It’s also worth noting that Bitcoin's digital gold narrative is taking off as both assets have grown in tandem,” Ruck said.

Gold set fresh highs Monday with a push above $3,380 per ounce, bringing year-to-date gains to 25%. Bitcoin has dropped more than 20% from a January peak of $108,000, though Monday’s push over $87,000 sent the asset to its highest level since Donald Trump’s “liberation day” in early April.

Pressure on the greenback has continued to grow as the dollar index (DXY) crashed to a three-year low, with some pointing out that most bad news has been “priced in” and that bitcoin could see upside in the coming days.

“Trump's inclination to remove Jerome Powell as Fed Chair and force interest rate cuts is causing people to sell the U.S. dollar and U.S. government debt, moving to other safe haven assets such as gold, European bonds, and now, Bitcoin,” Jeff Mei, COO at BTSE, told CoinDesk via Telegram on Monday.

“After all, when rates are cut, more money flows into the money supply, devaluing the U.S. dollar. In general, downward pressure on the US dollar is growing and this could be a driving catalyst for Bitcoin to become a safe haven asset,” Mei added.

Meanwhile, here’s a machine’s view of the markets today, powered by the CoinDesk Markets AI bot.

ADA Price Analysis

XRP Price Analysis

SOL Price Analysis

BNB Price Action