Bitcoin
BTCUSD
faces significant challenges in 2025 as gold fund inflows approach $80 billion.
Data from Bank of America (BoA) shared on X by trading resource The Kobeissi Letter on April 15 highlights gold’s “best streak” since 2013.
Gold breaks records as Bitcoin ETFs falter
With the US trade war prompting investors to turn to gold, Bitcoin has stepped back from its role as a hedge against economic volatility.
BoA data reveals that inflows into gold funds are reaching record levels, with Cointelegraph Markets Pro and TradingView reporting new all-time highs for XAU/USD approaching $3,300 per ounce on April 16.
“Gold fund net inflows have surged to a record $80 BILLION year-to-date, double the previous high of 2020,” Kobeissi observed.
“Investors are funneling money into gold at an unprecedented speed in response to soaring market uncertainty. Consequently, gold prices have climbed 22% year-to-date, outperforming all major asset classes.”
In contrast, BTC price action tells a different story. Despite the introduction of the US spot Bitcoin exchange-traded funds (ETFs) and increasing global adoption,
BTCUSD
saw five-month lows earlier in April.
Analytics from the onchain platform Glassnode show that the combined assets under management for the ETFs have dropped from $106 billion at the beginning of the year to $92 billion this week.
“Gold prices have achieved 52 all-time highs in the past year, marking the best run in 12 years,” Kobeissi concluded.
“Gold remains the global safe haven.”
Gold “terminal top” meets Bitcoin optimism
Yet, despite its ongoing record-breaking performance, market analysts are beginning to sense that gold’s remarkable rise may be nearing its conclusion.
This week on X, veteran trader Peter Brandt referred to a potential “blow-off top” in XAU/USD.
“Gold has now entered its blow-off phase,” he remarked.
“Such rapid progress typically leads to a terminal top, but attempting to pinpoint a peak can be costly. Blow-off tops can extend well beyond a bear’s capability to meet margin calls.”
A potential drop in gold prices might provide an opportunity for Bitcoin to gain ground, based on a popular theory suggesting that
BTCUSD
trends follow gold with a delay of several months.
Great chart from my Partner, David Foley.
Illustrates how Gold leads and Bitcoin follows more vigorously. Scale varies for each. @DAAF17 pic.twitter.com/jHMe6apewj
“The reasons behind this trend remain unclear,” said Anthony Pompliano, founder and CEO of Professional Capital Management, during a CNBC interview on April 15.
Pompliano pointed out that traditional financial institutions might not yet be comfortable with the concept of Bitcoin as a safeguard against macroeconomic uncertainty.
“However, it is evident that when gold begins to rise, approximately 100 days later, Bitcoin tends to not only catch up but often surges even more, leading to heightened volatility,” he explained.
This article does not provide investment advice or recommendations. Every investment and trading action carries risk, and readers should perform their own due diligence before acting.
