Bitcoin’s latest upward surge is once again fueling debate about whether the cryptocurrency is moving away from its historical correlation with tech stocks, instead showing signs of aligning more closely with traditional safe-haven assets like gold.
A Week of Strong Gains for Bitcoin and Gold
Both Bitcoin and gold saw notable gains early this week. Bitcoin climbed approximately 3%, hitting $87,500, while gold approached $3,400 during early Monday trading in Asia. The momentum didn’t stop there. On Tuesday, Bitcoin reached as high as $88,800 in early trading before jumping past $89,000, marking a 37% increase so far this year.
Gold also posted significant milestones. Futures surpassed the $3,500 mark for the first time on April 22, while spot gold briefly touched $3,498, bringing its year-to-date gains to over 30%, according to TradingView data.
A Shift in Correlation: Bitcoin Breaking Away from Tech
Historically, Bitcoin has moved in sync with high-risk assets such as tech stocks. However, in recent sessions, its behavior appears to be diverging. Analysts believe this may be an early indicator that Bitcoin is evolving into a more independent asset class—one that may act more like gold during periods of economic uncertainty.
Market instability, including a weakening dollar and political pressures such as former President Trump’s increased scrutiny of Federal Reserve Chairman Jerome Powell, has driven investors to seek safety in assets traditionally viewed as inflation hedges or stores of value.
Institutional Demand Fueling Bitcoin’s Ascent
One of the key contributors to Bitcoin’s surge has been renewed institutional interest. The QCP Group reported that Bitcoin saw strong demand during U.S. trading hours, helping to propel the digital asset to its highest levels since early April.
Spot Bitcoin ETFs listed in the U.S. recorded around $381 million in net inflows on Monday—marking their best day since January. These flows suggest that large-scale investors are increasingly seeing Bitcoin as more than just a speculative asset.
The Growing Appeal of Digital Gold
The synchronized movement of gold and Bitcoin is prompting analysts to consider the long-term potential of Bitcoin as a “digital gold” alternative. While not yet completely decoupled from traditional risk assets, Bitcoin’s current trajectory could strengthen arguments for its role in a diversified, inflation-hedging portfolio.
“As capital rotates into safe-haven and inflation-hedging assets, BTC and gold are proving to be key beneficiaries of the exodus from USD risk,” QCP Group stated in its latest report.
Some experts warn that it’s premature to declare a full decoupling. Still, the asset’s resilience alongside gold amid market turbulence is a signal that Bitcoin might be carving out a more stable, mature role within the financial ecosystem.