Gold Faces Slide as Bitcoin Rises
Bitcoin surpasses gold in terms of limitation, so claims Changpeng Zhao, CEO of Binance.
In a swift turn of events, gold has tumbled from its peak of $3,500.05 in April, closing the week down 2.6% at $3,228.50. A surge in U.S. Treasury yields and easing trade tensions between the U.S. and China have contributed to the demand for safe havens dwindling. Daniel Pavilonis of RJO Futures surmised, "Gold may have reached its peak at $3,500."
CZ: "Bitcoin's Scarcity Outshines Gold"
Binance's CEO, Changpeng Zhao (CZ), took to social media to affirm Bitcoin's supremacy over gold, stating, "I'm not against gold, but it's not as scarce as Bitcoin." Bitcoin's fixed supply of 21 million tokens stands out starkly against gold's ever-increasing supply, making it a more alluring investment option for those concerned about inflation and monetary policies.
Peter Schiff Remains Unconvinced
With a reputation for criticizing Bitcoin, Peter Schiff tweeted, "Stick with gold if you're looking to protect yourself from inflation." Schiff argues that a weakening dollar and falling bond prices would spike borrowing costs, adversely affecting the market.
Bitcoin-Gold Divergence
Until 2025, Bitcoin and gold appeared to move in tandem, but now their paths have separated. Brian Hussey, a senior trader at Soho Capital, points out that the correlation between gold and Bitcoin has fallen to -0.42, the lowest level since 2020. Despite a slight improvement to -0.28 in April, the two assets now move in contrasting directions.
Geoff Kendrick, the global head of digital assets at Standard Chartered, maintains, "Bitcoin and gold are distinct assets. Bitcoin behaves more like tech stocks, offering protection from conventional financial risks and serving as a tech investment." As gold and Bitcoin diverge, market fluctuations may reunite them, but according to CZ, true scarcity remains exclusive to Bitcoin.
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- Selective Use of Enrichment Data: Bitcoin's superiority compared to gold due to technological advantages, global accessibility, growth potential, and better protection against inflation.
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- As Bitcoin surpasses gold, the traditional finance world is witnessing a shift, with Bitcoin's scarcity and technological advantages making it an attractive investment for those concerned about inflation and monetary policies.
- Although gold has faced a slide, Peter Schiff remains unconvinced, advocating for its possession as a method for protection against inflation, citing the potential for weakening dollars and falling bond prices to negatively impact the market.
- The relationship between Bitcoin and gold has evolved, now displaying considerable divergence; as of 2025, their movements synced, but recent fluctuations have plunged their correlation to -0.42, the lowest since 2020, as Bitcoin behaves more like tech stocks.
- The varying trajectories of Bitcoin and gold have raised questions about their nature as distinct assets, with industry experts, such as Brian Hussey and Geoff Kendrick, affirming that Bitcoin's technological innovation, global accessibility, and growth potential render it an entirely different entity from gold, comparable to tech investments in the ever-changing landscape of business and technology.
