Bitcoin’s Digital Gold Narrative Fades as Gold Reclaims Market Strength

Bitcoin’s ratio against gold has dropped from over 50 to near 30, highlighting a strong investor pivot toward tangible assets.

Gold futures surged to $4,130 per ounce, marking a record high and a one-day trillion-dollar boost in market value.

GLD ETF trading volume hit $12.5 billion, signaling intensified institutional interest as gold outperforms major equities.

Gold’s resurgence is reshaping market sentiment as investors move toward tangible assets amid rising volatility. Bitcoin, once heralded as digital gold, is losing ground rapidly. The ratio between Bitcoin and gold, which once exceeded 50, has slipped to around 30, reflecting a sharp change in momentum. Bloomberg strategist Mike McGlone described the trend as an early sign of a “great reset,” signaling pressure on risk assets while gold strengthens quietly.

The latest trading sessions underline the split. Bitcoin attempted to break above $124,000 but reversed within hours, falling below $111,000 as U.S. markets opened. This sudden correction marked one of the steepest intraday drops this quarter, adding weight to McGlone’s warning that volatility across risk assets is far from over. Meanwhile, gold’s rally intensified. Futures climbed by $130 in a single session, closing at $4,130 an ounce, setting a new all-time high.

Gold’s Market Performance Breaks Records

Gold’s market capitalization expanded by nearly a trillion dollars in a single day, supported by record-breaking volume in the SPDR Gold Shares ETF (GLD). The fund reported $12.5 billion in trades, the second-highest daily turnover in its history and greater than activity seen in most of the Magnificent 7 tech stocks. In addition, the Relative Strength Index of gold reached 91.8, which is the highest monthly reading ever in the history of investment in the gold market, and this attests to continued demand by the institutional and retail investors.

McGlone, who has been criticized because of his bearish outlook on the market, has some data on his side that supports his views. Since March 2024, gold has only had four losing months, which is an indication of a consistent rise against the background of general financial insecurity. By comparison, Bitcoin volatility keeps on disturbing traders who previously perceived it as a hedge. With equity markets hanging in the balance, the consistent rise of gold highlights a new confidence in the tangible scarcity rather than the electronic one.

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