Gold’s rally to fresh all-time highs while Bitcoin slumped highlights a clear split in investor sentiment between traditional safe-haven assets and digital alternatives, according to experts.
The divergence comes as gold extended gains amid expectations of further U.S. interest rate cuts and sustained demand for safe havens in an uncertain political environment.
Bitcoin, on Tuesday meanwhile, fell more than 3% in 24 hours, highlighting ongoing volatility in the asset class.
Speaking with Yellow media, David Siemer, CEO and co-founder of Wave Digital Assets, said the rally reflects short-term preference for established hedges, though history suggests the move may set the stage for Bitcoin.
“In past cycles, Bitcoin has rallied between 145% and 300% in the year following major gold peaks,” Siemer noted.
He added that some profit-taking in Bitcoin may have contributed to gold’s surge, a rotation he views as ultimately healthy.
Ryan Lee, Chief Analyst at Bitget Research told Yellow media that the market is still treating Bitcoin as speculative compared with gold’s inflation hedge status.
“Gold has managed to retain its inflationary hedge status, while Bitcoin is still seen as volatile,” Lee said. “Gold benefits from institutional and government-level trust, while Bitcoin’s positioning remains largely retail-driven and opportunistic.”
Mamadou Kwidjim Toure, founder and CEO of Ubuntu, said the divergence highlights a deeper preference among institutional investors.
“The majority of institutional capital remains unconvinced by the bitcoin-as-a-hedge thesis,” Toure said. “Gold represents stability and centuries of institutional trust, while Bitcoin continues to be treated as a volatile growth asset.” He emphasized that while some rotation from Bitcoin to gold likely occurred, the bulk of gold’s rally stems from broader macroeconomic uncertainty and capital seeking custody-secure assets.
Kyle Chassé, founder of MV Global, framed the divergence as part of a familiar market pattern. “Gold ripping to records while Bitcoin cools tells you where big money hides in macro stress—deep, century-old liquidity,” he said. “This isn’t panic—it’s disciplined rebalancing. Bitcoin is high-beta monetary exposure, while gold is ballast.”
The split between the two assets also reflects structural differences.
Gold enjoys sovereign and central bank support, making it a cornerstone in portfolios during stress. Bitcoin, despite its growth to a $2.2 trillion market cap, remains far more sensitive to speculative flows and regulatory developments.
The divergence has sharpened attention on upcoming monetary signals. Investors are awaiting remarks from Federal Reserve Chair Jerome Powell and fresh U.S. inflation data later this week, both of which could influence whether gold maintains its record rally or Bitcoin stages a rebound.