Gold hits a new ATH. Why is Bitcoin lagging behind?

Gold has just set a new all-time high (ATH), approaching the level of $3,000 per ounce. Meanwhile, bitcoin, which until recently was seen as digital gold, is clearly lagging behind, trading below $90,000. What is behind the cryptocurrency no longer following the path set by the king of metals?

Bitcoin's divorce from gold

Recent months have shown a clear decoupling of the BTC price from gold. While the precious metal is breaking records and is treated as a safe haven in uncertain times, bitcoin is unable to recover from its recent sharp declines. It appears that investors no longer treat this cryptocurrency as a "safe haven" asset.

Geopolitics is driving gold prices higher

Geopolitical instability remains the main driver of rising gold prices. The situation is aggravated by Europe's unclear political future, linked to the possible withdrawal of US troops from the region, and by growing tensions between the US and China. Fearing for the future, investors are moving capital en masse into lower-risk assets - gold, silver and US bonds.

Bitcoin is closer to the stock market than to gold

In February, bitcoin behaved much more like the S&P500 and NASDAQ stock indices than like gold. Until the BTC price breaks through the $92,000 barrier and holds that level, it will be difficult to speak of a lasting return to an uptrend. The key moment may be the upcoming Fed meeting, scheduled for 19 March. If Jerome Powell reassures the markets by suggesting there is no risk of a recession in the US, bitcoin may regain some of its lost momentum.

Can bitcoin match gold?

Today, gold has already exceeded $20 trillion in total market capitalisation. With a similar capitalisation of the cryptocurrency market, the price of a single BTC could reach as much as a million dollars. Although this seems unimaginable today, the cryptocurrency market still has enormous growth potential - but it needs stabilisation and a rebuilding of investor confidence.