Bitcoin Lacks the 'Digital Gold' Narrative as Gold Prices Hit All-Time Highs

Gold prices have reached an all-time high of $3,317 per ounce, a 25% climb since the start of the year.

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Grab a coffee to see what analysts say about Gold hitting new all-time highs while Bitcoin lags behind. At this point, many in the crypto community are wondering if the ‘Digital Gold’ narrative is beginning to unravel.

Is Bitcoin Akin to a Tech Stock? Analyst Weighs In

Gold prices have reached an all-time high of $3,317 per ounce, a 25% climb since the start of the year. Analysts say this surge highlights growing investor anxiety over the turbulent global economic climate, fueled largely by a tit-for-tat trade war among major economies.

These developments have also stirred debate about the potential impact on Bitcoin, with experts offering insights on whether the digital currency will see a similar uptick in value or remain largely unaffected by the economic turmoil.

“Bitcoin has closed the first quarter of 2025 with a 11.8% decline and recent fluctuations in the last two months highlight Bitcoin is extremely sensitive to macro-economic factors,” Paybis Chief Executive Officer Innokenty Isers told BeInCrypto.

Isers believes that in the short term, Bitcoin remains highly correlated with the traditional market.

“Bitcoin’s correlation with equities—most notably a 0.72 correlation with the S&P 500— has led some investors to re-evaluate its position as ‘digital gold’ narrative—at least in the short term,” he added.

Moreover, Isers added that the correlation between Bitcoin and gold remains low at 0.2. This indicates that the returns of the two assets have largely moved independently.

“Historically, this correlation has rarely exceeded 0.3, which highlights a limited linear co-movement between the two. In the recent months, Bitcoin has exhibited characteristics more akin to a tech stock than a traditional digital gold,” Isers stated.

The Paybis executive said that from a broader macro perspective, Bitcoin’s Fear and Greed Index reads 29, which suggests market sentiment is still largely stuck in the fear zone—even with a slight recovery.

“At the same time, Bitcoin ETFs have seen steady outflows throughout April, despite the asset’s price climbing. So far, outflows have totaled $812.3 million this month, with BlackRock’s IBIT accounting for the largest share,” Isers said.

According to Wednesday’s QCP capital observation, despite a modest rebound in recent days, Bitcoin has yet to exhibit signs of safe-haven demand. Rather, it continues to trade in line with US equities and display sensitivity to macroeconomic developments, rendering it more like a "tech stock" than a safe-haven asset.

This analysis comes as the global economic landscape remains awash with uncertainty. A looming trade war between major powers has sparked market volatility and pushed investors towards traditional safe-haven assets, such as gold, which recently hit an all-time high.

As such, the lack of safe-haven demand for Bitcoin is noteworthy given the turbulent economic climate and the fact that gold prices have surged to record levels. This observation could have implications for the long-term narrative of Bitcoin as a digital form of gold, a narrative that has been a subject of ongoing debate within the crypto community.

Investor eyes will be on the US Federal Reserve Chair Jerome Powell’s speech at the Economic Club of Chicago later today. Market entries are expecting the next clues on rate cuts and some clarity on tariff-driven inflation.

Earlier this week, Fed Governor Christopher Waller also suggested that the central bank may be underestimating the persistence of inflationary pressures. At the moment, market entries are hoping for some sign of direction.

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