Bitcoin Vs Gold: BofA Strategist Flips Bullish on Gold as XAU/BTC Hits 10-Week High

A strategist at the Bank of America (BofA), Michael Hartnett, notes that investors should purchase gold to hedge against the rising US debt that could weaken the dollar. The strategist’s bullish outlook on gold comes as the XAU/BTC reading surges to the highest point in ten weeks as gold continues to perform better than Bitcoin.

Bank of America Strategist Sees Gold as Better Hedge Amid Mounting US Debt

Hartnett shared his bullish outlook on gold in the “Strife Begins at Forty” report, where he said that the US debt will reach $40 trillion by August 26, and investors should bet on gold because the US dollar will start to depreciate and the bond market will likely collapse.

The BofA strategist also warned that increased spending towards AI has lured people away from the bond market, and as pressure on this market grows, Hartnett notes that gold is the “optimal solution.”

Still, his forecast comes one month after the Bank of America trimmed its 2026 target for gold from $5,093 to $4,360 due to the likelihood of the Federal Reserve hiking rates this year.

The Fed will release the FOMC minutes for the July Fed meeting on August 19, and if the minutes reveal a hawkish tone and raise the odds of the Fed hiking rates at the September meeting, it could weaken the bull case for gold and Bitcoin.

XAU/BTC Climbs to 10-Week High as Gold Outperforms Bitcoin

The XAU/BTC reaDing has moved from a low of $0.0606 on July 21 to $0.069 at the time of writing. XAU/BTC now sits at its highest point since June 9 after rising by 15% to show that gold is outperforming Bitcoin.

The price of gold had dropped to a 2026 low of $3,942 on June 30, but it has since gained by 11.7% to trade at $4,407 at the time of writing after US-Iran talks slashed the chances of the Fed hiking rates in September. In contrast, Bitcoin remains stuck between $62,000 and $65,000.

An earlier report by CoinGape noted that billionaire Ray Dalio also sees gold outperforming Bitcoin in the long term as people begin to de-risk from the AI trade that is already showing signs of being in a bubble.

Bitcoin Price Analysis as Bearish Crossover Nears

The price of Bitcoin has created a double bottom pattern on the one-week chart. This pattern usually suggests that the trend could change from bearish to bullish if Bitcoin price holds the support at $59,000.

However, the double pattern is forming when the 50-week SMA is dropping and nearing a bearish crossover below the 150-week SMA. If this crossover occurs, it will invalidate the bullish future Bitcoin outlook suggested by the double bottom.

The RSI of 39 also suggests that the momentum is favoring bears, and this has left Bitcoin price stuck in a tight range despite bulls defending the support at $59,000.

If Bitcoin price moves above the resistance of $65,500, it will suggest that the bullish outlook seen in the double bottom pattern is playing out.

Still, Bitcoin price has to close above the 5-week SMA of $81,500 to show that the long-term trend has also changed to favor bulls.

Keep up with the odds of the Fed cutting or hiking rates at its September meeting on our prediction markets, as analysts assess the implications of a dovish or hawkish Fed on Bitcoin and gold prices.