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Gold price is heading for an all-time high, what’s going on? How could the rally in gold price impact on Bitcoin (BTC)? Find out in this deep-dive exploration of Bitcoin Gold price interaction.
As markets react to the Federal Reserve’s delays, the price of gold is exploding, suggesting something dangerous is afoot (although perhaps that’s just Peter Schiff smiling).
Indeed, XAU went up to hit $2,361 in the last 24 hours and has climbed over +10% in 1.5 months.
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The short explanation is that someone dumped 1.6 billion of XAU in two minutes around 3 PM (UTC) on Thursday, and overnight trading brought it right back up.
So, what’s going on with the gold price? And what does it mean for Bitcoin with the price halving 10 days away?
What’s Going on With Gold? Countries are Dumping Dollars, Buying Gold
We’re witnessing the dawn of a new era, in many ways reminiscent of the Reagan-Thatcher years of the 1980s.
Gold has hit record highs, not once but twice in quick succession. It’s not just inflation fears at play here; there’s a deeper, more profound sense that we’re stepping into a realm beyond the familiar confines of the Bretton Woods US dollar system established in 1944.
According to Currency Research Associates, gold isn’t just spiking; it’s embarking on a marathon bull run.
This surge is set against a backdrop where currencies like the yen and euro flex their muscles. The report hints at China’s strategic moves—hoarding gold and shedding US Treasuries—as a prelude to a grand reshuffling of global currency power (often teased by BRICs advocates).
The weaponization of the dollar is also accelerating the dollar’s loss of purchasing power amid wholesale US sanctioning.
What About Gold Bitcoin Price Interaction
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Despite the surge in gold, when compared to Bitcoin’s performance – there is no discussion – no matter how much gold acolyte Peter Schiff tries.
Schiff highlighted in a post on X the asset’s meteoric rise in price: “This likely represents a major shift. I expect gold’s rise and bitcoin’s fall to accelerate. Don’t say I didn’t warn you!” he emphasized.
Reacting to Schiff’s remarks, veteran trader Peter Brandt shared his insights:
Indeed, a comparison of the precious metal verses Bitcoin price chart speaks for itself, but the uptick in gold does provide bullish fundamentals for BTC, which is often labeled digital gold after Ammous’ famous Bitcoin Standard.
The broader sentiment of a shift away from the USD to so-called ‘safe haven’ assets suggest investors could increasingly turn their attention to BTC, especially with its consistent outperformance.
The Bottom Line: Gold Price Pump is Good For Bitcoin
As a fervent believer in Bitcoin’s supremacy, Brandt reckons BTC is on a warpath to usurp fiat’s throne. By February, he was betting big, slapping a $200K tag on Bitcoin this bull cycle.
With the Bitcoin Halving countdown at T-minus 10 days, brace yourself. Bitcoin and gold are about to deliver a one-two punch to the US dollar.
EXPLORE: BakerySwap PUMP Raises $280M in Biggest-Ever Meme Coin Presale – Could New Dogecoin Be Next?
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital
