Gold Hits Record High: Bitcoin’s ‘Digital Gold’ Status Under Scrutiny

Gold has reached a record high of $3,317, prompting concern over Bitcoin’s place as ‘digital gold’. Analysts report Bitcoin is closely linked to equity markets rather than traditional safe-havens like gold, stirring debates about its future amid ongoing inflation concerns. Bitcoin ETFs are facing significant outflows, reflecting cautious market sentiment towards the digital asset.

In recent developments, gold has surged to an all-time high of $3,317 per ounce, a 25% increase since the beginning of the year. This price hike reflects growing investor anxiety linked to ongoing trade tensions among major economies, prompting discussions about Bitcoin’s future in light of this. Analysts are pondering whether Bitcoin will follow gold’s upward trend or remain stagnated in its current trajectory.

Innokenty Isers, CEO of Paybis, notes that Bitcoin ended the first quarter of 2025 with an 11.8% decline, revealing its sensitivity to macroeconomic factors. He elaborates that Bitcoin has a strong correlation with traditional markets, particularly a significant correlation of 0.72 with the S&P 500. This has led investors to reassess Bitcoin’s status as ‘digital gold’ in the short term, as its relationship with gold is notably weak, holding a mere 0.2 correlation.

Isers points out the historical context, mentioning that the correlation between Bitcoin and gold typically does not exceed 0.3. Recently, Bitcoin’s price movements have aligned more closely with tech stocks than with traditional safe-haven assets. Currently, the Fear and Greed Index for Bitcoin is at 29, indicating a high fear sentiment in the market, despite a slight recovery in prices.

Aside from price fluctuations, the Bitcoin ETF market has seen significant outflows, amounting to $812.3 million in April, primarily influenced by BlackRock’s IBIT ETF. QCP Capital’s observations highlight a lack of safe-haven demand for Bitcoin despite fluctuations in value. Investors are now focusing on upcoming remarks from US Federal Reserve Chair Jerome Powell concerning potential rate cuts and clarifications regarding inflation measures.

On a regulatory note, Coinbase successfully concluded the SEC’s review of its financial disclosures without needing amendments, marking a significant regulatory achievement. Additionally, Bybit halted its PAWS airdrop over user allocation complaints, and Semler Scientific is set to conduct a $500 million securities offering to bolster its Bitcoin investments. Local Chinese governments are unloading seized cryptocurrencies amid economic strains, while VanEck proposed “BitBonds,” which could integrate Treasury securities with Bitcoin to help manage US debt refinancing issues.