Gold and Bitcoin Soar Together, US Dollar Weakens – What Does It Mean for the Future of Bitcoin Price?

In a striking convergence rarely seen in financial markets, both gold and Bitcoin (BTC) are rising together, signaling a convergence of safe-haven narratives amid rising economic uncertainty and a weakening U.S. dollar.

According to analysis by The Kobeissi Letter, gold has reached 55 all-time highs in the past 12 months, most recently hitting a new all-time high of $3,384 per ounce. Meanwhile, Bitcoin has officially joined the rally, surpassing $87,000, positioning BTC firmly alongside gold in investor sentiment as a store of value.

This parallel movement marks a rare moment in modern financial history when traditional and digital assets considered “safe havens” have climbed together. This rise comes amid increasing speculation that the U.S. Federal Reserve will cut interest rates and heightened geopolitical and economic uncertainty.

In the crypto space, gold-backed digital tokens are also seeing renewed interest. PAX Gold (PAXG) and Tether Gold (XAUT), each pegged to one ounce of gold, have seen daily trading volumes exceed $100 million multiple times in recent weeks. These tokenized assets offer investors blockchain-based gold exposure by combining the stability of the precious metal with the accessibility of crypto markets.

Enmanuel Cardozo, a market analyst at Brickken, an asset tokenization platform, said that while Bitcoin’s momentum is strong, investors remain cautious. “While Bitcoin has shown resilience, I think past experience, current economic uncertainty and selling pressure in the market are still keeping investors on the sidelines and waiting for clearer entry signals,” Cardozo said.

Cardozo also noted that recent institutional involvement, including from the likes of Strategy and Tether, could play a significant role in Bitcoin’s price trajectory, especially as the market responds to the traditional four-year halving cycle. “A Fed rate cut in May or June could inject more money into the system and send Bitcoin higher faster,” Cardozo added.

*This is not investment advice.