Analysts say Bitcoin could be the next major asset to surge as gold hits record highs
Gold Price Hits Record High Amid Global Economic Uncertainty
The price of gold has surged to an all-time high of $4,357 per ounce, propelling its market capitalization to an unprecedented $30 trillion. This milestone makes gold over 14 times larger than Bitcoin, whose current market cap stands at around $2.1 trillion.
The new valuation also means gold is now 1.5 times bigger than the combined market capitalization of the world’s largest tech companies — including Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta, and Tesla — collectively valued at approximately $20 trillion.
Unlike company stocks, gold’s market cap reflects the estimated total value of all gold ever mined, making it a unique barometer of global wealth preservation sentiment.
Why Gold Is Soaring — And What It Means for Bitcoin
Gold’s meteoric rise of 64% since the beginning of the year is being driven by investor concerns over dollar debasement, geopolitical instability, and renewed trade tensions. The commodity has more than doubled since early 2024, highlighting a strong shift toward traditional safe-haven assets.
According to crypto analyst Sykodelic, “Gold added over $300 billion to its market cap today. It’s been adding an entire Bitcoin market cap in one week.”
Market strategist Merlijn the Trader noted a sharp divergence between gold’s rise, expanding M2 money supply, and Bitcoin’s relative stagnation. “This divergence never lasts — liquidity always finds risk, and the catch-up rally will be brutal,” he commented.
Many market watchers believe that when gold stabilizes, Bitcoin could experience a powerful rally, as investors look for alternative assets with higher upside potential.
Venture investor Joe Consorti explained, “If Bitcoin can loosen its correlation with U.S. equities amid geopolitical tension, and if gold flows slow down, this could become the trade after the trade.”
Currently, Bitcoin (BTC) trades at $109,165, up 16% since January 1, but still 14% below its all-time high. If historic trends hold, analysts suggest Bitcoin may soon follow gold’s trajectory, benefiting from the same global liquidity cycle that is now lifting precious metals.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.