Key Highlights:
- Bitcoin ETFs attracted $839 million in fresh investments while gold ETFs saw a $4.1 billion decrease.
- Historical trends indicate a potential 8.3% recovery in gold prices.
- Bitcoin maintains robust support levels, targeting $150,000 by year’s end.
Gold prices are experiencing a significant downturn as Bitcoin, its digital alternative, regains lost ground. Recently, gold plummeted over 10.60%, hitting lows around $3,915, marking its steepest decline since April.
Market Analysis
XAU/USD vs. BTC/USDT daily chart comparison. Source: TradingView
This drop corresponds with a rally in Bitcoin prices, which increased by approximately 6.70% following discussions between Donald Trump and Xi Jinping aimed at resolving trade tensions.
Could this downturn in gold prices indicate a significant shift back towards Bitcoin as investors seek shelter in cryptocurrency during upcoming months?
Bitcoin ETF Inflows vs. Gold ETF Outflows
US-listed Bitcoin ETFs have secured $839 million since gold reached its peak on October 20, according to Farside Investors. Conversely, gold ETFs have lost approximately 1.064 million ounces or about $4.1 billion in the same timeframe.
US-listed Bitcoin ETF flows
US-listed Bitcoin ETFs’ cumulative flows. Source: Farside Investors
BTC is currently showing strong technical support near $101,790, reflecting stability against changing market sentiments, with expectations for further increases.
Analyst Insights on Gold Trends
Despite a recent correction, analysts believe gold remains bullish with a year-to-date increase of around 50%, driven by strong central bank purchases and the need for safe havens against inflation and debt.
Metal trader David Bateman claims the current bearish phase is temporary, and the underlying fundamentals for gold’s long-term growth are solid.
Gold Market Trends
Source: X
Historical trends indicate that gold has rebounded significantly after previous corrections, often recovering sharply within short periods.
Conclusion
The pattern suggests that if gold rebounds from its current levels, it could again test the $4,200–$4,250 range by December, solidifying its uptrend. Market predictions suggest it may eventually reach $5,000 by 2026 provided it remains above key support levels.
