In recent weeks, gold ETFs have experienced significant inflows, totaling over 1 million ounces in the past seven days. This marks the highest influx since October 2022. Meanwhile, U.S. bitcoin ETFs have seen $2 billion in inflows during the same period.
Historical data from 2020 suggests a correlation between gold’s price and bitcoin’s performance. When gold’s rally slowed, bitcoin often experienced a surge. This pattern could potentially repeat itself, with a pause in gold’s upward momentum potentially paving the way for a stronger bitcoin rally.
However, it’s important to note that past performance is not indicative of future results, and there’s no guarantee that this pattern will continue. Gold’s current price trajectory remains uncertain, and it may not show signs of exhaustion or demand slowdown anytime soon.