PANews reported on October 24 that according to CoinDesk analysis, traders who want to understand when Bitcoin may hit a new all-time high should consider the gold price chart. Historical data in 2020 shows that once gold's bullish momentum weakens, Bitcoin is likely to soar to new highs. In 2020, gold led Bitcoin higher and hit a new all-time high in August 2020; BTC followed closely in December of that year.
BTC has been fluctuating between $50,000 and $70,000 since April, with multiple crypto-specific and macro factors continuing to limit its upside. Meanwhile, gold prices have surged more than 20% in the same period, hitting new highs above $2,700. Gold is up 37% this year. Silver prices, on the other hand, are up 43% this year, almost hitting $35 on Tuesday, a 12-year high. This pattern is similar to how gold led Bitcoin's gains in 2020. Therefore, if past experience is a guide, a pause in gold's rally could pave the way for stronger BTC demand. That said, it remains uncertain whether history will repeat itself, and as of now, gold has shown no signs of exhaustion or slowing demand.
Gold ETF products have seen inflows of more than 1 million ounces over the past seven trading days, the highest level since October 2022. During the same period, U.S. Bitcoin ETFs saw inflows of $2 billion. Meanwhile, iShares Bitcoin Trust saw net inflows of $1.7 billion over the same period. However, not all inflows are directional holdings; according to Sui Chung, CEO of crypto index provider CF Benchmarks, 60% of recent inflows are directional holdings, while the other 40% consists of fundamental trading.
