Gold Price Soars to 45-Year High: Impact on Bitcoin

Gold prices have reached a 45-year high, exceeding $4,100 per ounce driven by central bank purchases amidst geopolitical tensions. This surge challenges Bitcoin’s status as an inflation hedge and raises questions about the future of digital gold. While Bitcoin’s growth has slowed year-to-date, this dynamic has sparked debate about its role in the market. 2025’s strong gold rally reflects a growing reliance on safe-haven assets amid uncertainty. This shift is leading to negative correlation between gold and Bitcoin. Notably, this marks the first time since February that the Correlation Coefficient has dipped below zero.