Key Takeaways:
- Gold Hits Record High: The price of gold has surged to an all-time high of $2,940 per ounce, reigniting the Bitcoin vs. Gold debate.
- Bitcoin Faces Capital Outflows: Veteran trader Peter Brandt notes a significant exodus of capital from Bitcoin as long-term investors cash out.
- Market Rotation Expected: Analysts predict a shift back into Bitcoin within the next few months as investors reassess market trends.
Gold’s Surge Raises Questions About Bitcoin’s Strength
The ongoing battle between Bitcoin and gold has intensified as the precious metal reaches record highs. While Bitcoin struggles to break the $100K resistance, gold has cemented its dominance with an impressive rally, hitting $2,940 per ounce.
Veteran trader Peter Brandt has observed a significant capital rotation away from Bitcoin, suggesting that some large investors are taking profits. This trend has reignited debates on whether Bitcoin can maintain its position as “digital gold.”
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Bitcoin’s Market Cap Falls Behind Gold
Gold’s rally has been nothing short of remarkable, gaining 44% over the last year and nearly 10% since the start of 2025. Bitcoin, meanwhile, has seen relatively slower growth, leading some critics to question its position against gold.
Economist and long-time Bitcoin skeptic Peter Schiff pointed out an interesting trend on social media platform X:
“In 2021, when Bitcoin hit $69K, its market cap was 10.72% of gold’s market cap. Today, even at $98K, its market cap has fallen to 9.95%. If Bitcoin is the new gold, why has it become less important over the past four years?”
Veteran Traders Weigh In
Peter Brandt acknowledged that major Bitcoin holders, or “whales,” who have seen massive gains over the past decade, are now exiting their positions. He emphasized that this is a normal market cycle where long-term investors take profits after achieving substantial returns.
Meanwhile, crypto analyst Charles Edwards noted that the rising gold demand is linked to economic uncertainty. However, he believes that Bitcoin historically lags behind gold in market reactions and that capital will likely rotate back to BTC in the coming months.
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Will Bitcoin Bounce Back?
The Bitcoin vs. Gold debate remains unresolved, but many analysts believe Bitcoin is poised for a comeback. Crypto strategist Michael van de Poppe remains optimistic, suggesting Bitcoin is on the verge of a new all-time high:
“Gold has been printing strong all-time highs, and I think we’ll see the same for Bitcoin in the coming 2-3 weeks.”
However, others, like Charles Edwards, argue that Bitcoin is currently in a slow phase similar to mid-2024, where it remained stagnant despite gold’s surge. He suggests that Bitcoin could take 3-6 months before seeing a significant breakout.
Market Data at a Glance
As of press time:
- Bitcoin Price: $97,650
- Daily Trading Volume: Down 12%, standing at $33.3 billion
- BTC Futures Open Interest: Up 1.62% to $60 billion
- 24-Hour Liquidations: $19.4 million
With market conditions favoring gold due to geopolitical uncertainty and inflation concerns, Bitcoin’s path forward remains uncertain. However, if historical patterns hold, BTC may soon reclaim investor interest as gold stabilizes.
