Gold Hits Record High Above $3,300 as Bitcoin Lags—Is the Digital Gold Thesis Losing Ground?

Gold Surges While Bitcoin Stalls: Is the ‘Digital Gold’ Narrative Fading?

Gold prices soared to an all-time high of $3,317 per ounce this week, marking a 25% rise since the beginning of the year, while Bitcoin struggles to maintain momentum. The diverging paths of these two assets have reignited debate over whether Bitcoin’s long-touted role as “digital gold” is starting to fall apart.

The surge in gold comes amid growing investor anxiety over global economic instability, including intensifying trade tensions between major economies. As traditional safe-haven demand drives gold’s ascent, Bitcoin’s recent performance has left some investors questioning its reliability as a hedge against macroeconomic volatility.

Bitcoin closed Q1 2025 with an 11.8% decline and has shown significant sensitivity to shifting economic conditions over the past two months. According to Innokenty Isers, CEO of crypto exchange Paybis, Bitcoin’s correlation with equity markets—especially the S&P 500—remains high at 0.72.

“This tight correlation has prompted investors to rethink Bitcoin’s position as a non-correlated asset or modern-day digital gold, at least in the short term,” said Isers in an interview with BeInCrypto.

In contrast, the correlation between Bitcoin and gold sits at just 0.2, reflecting minimal alignment in price movements. Historically, this figure rarely exceeds 0.3, reinforcing the idea that the two assets behave quite differently in the market.

“Lately, Bitcoin has mirrored the performance of tech stocks more than traditional store-of-value assets,” Isers added.

This sentiment is echoed by the Bitcoin Fear and Greed Index, which currently reads 29—firmly in the “fear” zone. Despite modest price recoveries, the overall mood in the crypto market remains cautious. Further fueling concerns, Bitcoin ETFs have experienced significant outflows in April, totaling $812.3 million. BlackRock’s IBIT has led the decline.

Meanwhile, investor focus is turning to the U.S. Federal Reserve, with Chair Jerome Powell expected to offer insight into inflation and rate cut prospects during his speech at the Economic Club of Chicago. Earlier this week, Fed Governor Christopher Waller warned that inflation may prove more persistent than previously estimated—an outlook that could continue to influence both traditional and crypto markets.

In the broader crypto landscape:

• Coinbase concluded a successful SEC review without needing to amend its financial disclosures.
• Bybit reversed a planned PAWS airdrop due to distribution issues.
• Semler Scientific plans a $500M securities offering to increase its Bitcoin reserves, despite holding a 5% unrealized loss.
• China’s local governments are reportedly selling off seized crypto assets to address economic shortfalls.
• VanEck has proposed “BitBonds,” a novel financial instrument blending U.S. Treasuries with a 10% Bitcoin allocation, aimed at addressing national debt refinancing.

Crypto Equities: Pre-Market Snapshot