Just as in 2020, Bitcoin can’t set a new record because gold does, or doesn’t it?

A somewhat strange theory claims that Bitcoin has not set a new record in the last seven months because gold is setting new records all the time. As strange as that sounds, there is some logic to it. Hear me out.

Tandem

Gold and Bitcoin moved virtually in tandem before the year 2020. When the stock markets were doing poorly and investors needed a safe haven, gold came in handy. Bitcoin got a lot less investment than gold did, but it normally followed the same pattern. Investors seeking safety briefly parked their money in Bitcoin.

However, for a moment in the spring of 2020 it seemed as if the world was going to end (when Covid emerged in Italy) and the stock markets plunged. At that time, gold had started a strong rally since the discovery of the first Covid case in China at the end of 2019 (rising to $1,450) and increased further as from the spring of 2020, rising to $2,000.

FTX

Bitcoin’s price didn’t move until the fall of that year, just as investors were exiting gold to park their investment in… You guessed it, Bitcoin.

The largest digital coin then rose from $10,000 to around $60,000 in March 2021, before stalling again and falling to $15,000 in 2022 (when FTX went bankrupt). At that point, gold started another small rally while Bitcoin remained stuck between $15,000 and $30,000.

Early this year, Bitcoin rose to a record price of $74,000 while gold moved sideways in a wide trading range. Over the next seven months (March to October), Bitcoin continued to move within a range between $50k and $70k while gold began another rally, setting record after record.

So if the last four years are any indication, gold would have to halt its rally for Bitcoin to rise above $74k.