Gold Soars To New Highs, Will The Bitcoin Price Follow?

Volatility has not cleared in the broader digital currency ecosystem, as showcased by the trend in the price of Bitcoin (BTC). Over the past 24 hours, Bitcoin’s price has displayed a unique twist that might finally change its trajectory.

While both bulls and bears swerve BTC volatility, Gold has shown mainly a bullish divergence. Current market data shows the precious metal has soared to another All-Time High (ATH).

Gold vs Bitcoin: Winner Declared?

Since the inception of Bitcoin, the rivalry between both assets has only grown over the years. However, in the short term, Gold appears to win the battle on several fronts. The asset has maintained a relative growth of 3.23% in the past 24 hours. Gold added over $103 to its price to print another high of $3,326.76.

Bitcoin price has not recorded a similar complementary growth. Over the past 24 hours, the coin has printed just a 0.25% uptick as of writing, with a spot price of $85,147.34. 

With the US-China tariff war and accompanying uncertainty, the debate on which asset can serve as a hedge against inflation has grown. Gold has maintained a steady growth path despite traditional assets fluctuating, reinstating its stance as a viable store of value.

Bitcoin Price Lagging Behind

Since BTC recorded an ATH above $109,114, it has fallen as much as 22.2% per CoinMarketCap data. Despite intense institutional inflow from firms like Strategy and Metaplanet, the market sentiment has not changed.

The challenge faced mostly by the BTC price is the displayed volatility. Over the past 24 hours, the coin has traded within three distinct extremes. These include its opening price of $84,900, a midday low of $83,185, and its current price of $85,332.

Its volatility has attracted backlash from critics like Peter Schiff. As reported earlier, Schiff claims BTC is in a major bear market as the $88,000 resistance point has been a hard line to break. Despite this, key proponents are optimistic that the price of Bitcoin can surmount current drawdowns to print massive rallies ahead.

How High Can BTC Go?

It is unknown how long the current Bitcoin price consolidation will last before it breaks out like Gold. However, the coin’s core proponents are convinced a major breakout is lurking ahead.

Bitwise CIO Matt Hougan once predicted a $1 million target for coin at the cycle’s peak. He argued that the current economic outlook might fuel short-term underperformance for the asset, but he noted a boom ahead.

Ultimately, BTC has maintained support at $83,000 in the short term, providing investors a cushion.