Why ‘Digital Gold’ Bitcoin Isn’t Rising as Gold Approaches $5,000

Bitcoin (BTC) dropped below the key $90,000 support zone and traded near $89,588 at the time of writing. The decline followed last week’s brief bullish breakout attempt. On the other hand, gold has reached an all-time high of over $4,900 per ounce at the time of writing. This development further underscores the difference between the two assets, which are commonly equated as stores of value. 

Why Bitcoin Isn’t Rallying With Gold

In an X post, analyst Lancaster.ETH pointed out the difference in the current price action between these two assets. He claimed that both assets can be classified as gold narratives, but only one is setting record Gold prices at all-time highs. He argued about what investors learn in times of macro uncertainty.

Gold, according to the analyst, is well known and accepted. He claimed that many participants are still learning about Bitcoin. The presence of that gap, he contended, is capable of stimulating quicker selling in case of the spread of fear.

Gold has defensive capabilities in uncertain cycles, owing to its multi-century reputation. Bitcoin, on the other hand, has not been around for very long and is deeply narrative-driven. The analyst claimed that the idea is not coming from failure, but from a developing concept.

Comfort and clarity are likely to dominate investor behavior. The analyst stated that people sell what they fear and buy what they know. He said that Bitcoin was in its trust-building phase, which was not structurally invalid.

CoinGape recently reported how gold and silver were rallying under the threat of Trump tariffs on imports from eight European nations. While gold has rallied to new highs, BTC has erased most of its yearly gains after the tariff threat.

Bonds and Dollar Set the Next BTC Move?

Merlijn The Trader wrote an X post that the old world still controls the capital flows in this stage. Silver and gold have been on the rise, whereas Bitcoin has lagged.

His opinion implied that the arrangement would be modified once the present macro shock subsides. Bond stress, he said, may impose liquidity relief, yield depression, and currency debasement. Those circumstances were characterized as the standard ground in the following crypto boom. Merlijn remarked that such drivers usually drive market rotations first before they materialize in crypto prices.

However, analyst Jacob King contended in an X post that money is leaving speculative assets and going into metals. King alleged that Bitcoin lacks clear utility in the current climate. He opined that it does not safeguard investors against tariff shocks, currency instability, or broader economic stress. King described the move as capital exiting Bitcoin, not a temporary pause.

The broader macro environment has also been attributed to gold’s strength. Peter Grant, the vice president and senior metals strategist at Zaner Metals, mentioned geopolitical friction and a weak dollar. Federal Reserve easing expectations for the current year were also cited as a major economic force.

Inflation data are also influencing rate expectations. As CoinGape reported earlier, November U.S. PCE inflation was 2.8% year over year as expected. The month-over-month inflation rate increased 0.2%, in line with predictions.

Core PCE registered comparable results of 2.8% YoY and 0.2% MoM. The consistency of the numbers maintains market focus on when and by how much the Fed will ease. Risk appetite continues to focus on policy expectations of asset classes.