On April 21, 2023, gold reached a new all-time high of over $3,390, driven by economic uncertainty and a weak dollar. This surge is expected to influence Bitcoin prices, which recently hit a monthly high of $87,570. Analysts suggest a strong correlation between gold and Bitcoin, noting their roles as safe-haven assets despite Bitcoin’s higher volatility.
On April 21, 2023, gold surged to a historic high of over $3,390, driven by heightened investor interest in safe-haven assets amid economic uncertainty. The increase in gold prices is believed to have stemmed from escalating global tensions and a weakening US dollar.
The latest figures from Trading Economics show gold’s price rose by approximately 2%, peaking at $3,395 around 7:30 UTC. An investigation ordered by President Trump into potential tariffs on US critical mineral imports has heightened trade disputes, particularly with China, contributing to investor anxiety surrounding traditional currencies.
This surge in gold prices may indicate a bullish trend for the cryptocurrency market, particularly Bitcoin. Analysts note a historical correlation wherein increases in gold prices often precede rises in Bitcoin, given both assets’ reputation as safe havens.
On the same day, Bitcoin achieved a new monthly high of $87,570, representing an over 3.2% increase in the last 24 hours. As of the latest data, Bitcoin is trading at $87,538, marking a substantial recovery after previously trading lower at the end of March.
Bitcoin has often been referred to as “digital gold”, with notable figures like Federal Reserve Chair Jerome Powell acknowledging its role as a competitor to gold in terms of value storage. Cathie Wood from ARK Investment Management has also indicated that Bitcoin’s market cap of $2 trillion might one day eclipse gold’s $15 trillion market cap.
Historically, the positive momentum of gold prices tends to be followed by rises in Bitcoin prices, as both are viewed as safeguards against fiat currency instability, with their supply limited by mining. Furthermore, volatility analysis shows that gold exhibits significantly lower volatility compared to Bitcoin, which often fluctuates by over 50%. Despite this, Bitcoin’s price trends have been known to align with gold’s movements albeit with some delay.
