Gold Breaks Past $3,000 to Hit a New All-Time High, Could Bitcoin Follow Suit?

On Friday, gold broke past $3,000 for the first time this year as Gold prices hit a record high of $3,004 per ounce, driven by rising global tensions, inflation worries, and an increasing demand for safe investments.

Gold prices hit a record high of $3,004 per ounce on Friday, driven by rising global tensions, inflation worries, and an increasing demand for safe investments amid a turbulent market. This milestone comes after a remarkable journey for the yellow metal, which has seen its market value exceed $20 trillion.

The world’s most valuable asset has reached new highs for the 13th time this year. With this latest surge, questions have naturally arisen about whether Bitcoin, often referred to as “digital gold,” could witness a similar remarkable rise.

Analysts Point to Striking Similarities

In contrast to gold’s ascent, Bitcoin has faced different challenges, with its value dropping significantly from the all-time highs reached earlier this year.

The crypto is currently trading 23.3% below its all-time high and has seen a 14.5% decline over the last month. At the time of writing, BTC is trading at $83,446, up 1% in the past 24 hours.

However, despite Bitcoin’s recent struggles, analysts remain hopeful that it could follow a path similar to gold’s historic rise, considering the significant role crypto ETFs could play.

An analyst took to X to compare the launch of Gold ETFs in November 2004 to Bitcoin’s ETF launch in January 2024. He suggested that the crypto could follow a similar pattern to gold.

The launch of the Gold ETF made it easier for both institutional and retail investors to gain exposure to gold. Over time, gold experienced significant price growth, with periods of highs and corrections, but it maintained a long-term upward trend, largely driven by ETF launches.

According to the analysis, Bitcoin seems to be following a similar path. If this trend continues, BTC could see steady long-term growth, with its ETF acting as a key driver for institutional adoption and continued price increases.

Another market analyst shared a similar view, highlighting that both gold and Bitcoin are following a five-step parabolic model. He believes that Bitcoin could soon see a big breakout, similar to gold’s past performance.

According to the analyst, Bitcoin has already moved past its “fakeout” phase and is now on track for a new all-time high. From here, he predicts that a surge to $150,000 is on the way.

Concerning Trends Emerge

Not all experts are optimistic. Market analyst Northstar pointed out a concerning trend in the gold/Bitcoin ratio, stating that Bitcoin has been underperforming gold for the past four years, the longest time ever.

He explained that during periods of high inflation, gold usually outperforms other assets, and this year has seen a strong return for the yellow metal.

However, Northstar believes that gold’s recent rise is not just about its price going up—it signals a shift in investments, which could lead to a big drop in stocks, including the NASDAQ, which Bitcoin usually tracks.

Financial analyst Charlie Morris also shared his concerns, noting that while gold-backed funds are seeing more investment, Bitcoin ETFs are losing value.

Morris had recently shared that in the last 30 days, gold ETFs have seen $10 billion in inflows, while Bitcoin ETFs have experienced $5 billion in outflows. He suggests that eventually, these trends will reverse, as they often do.

With Bitcoin currently priced around $80,000, the coming months will be crucial in deciding if it can match gold’s growth or keep performing differently.