Bitcoin and gold hit record highs together for the first time

Global markets are experiencing a whirlwind of mixed signals as Bitcoin and gold both hit record highs. This marks the first concurrent peak for the two assets since the emergence of Bitcoin over ten years ago. However, each asset’s distinct driving factors could create confusion – gold has long been a safe store of value, while Bitcoin’s function beyond pure speculation remains disputed.

This year, Bitcoin has seen a nearly 50% increase, boosted by flows into newly created US exchange-traded funds that directly hold the digital currency. Conversely, gold’s surge might suggest defensive manoeuvring due to worries over geopolitical tension or a potential slump in global stocks following a record-breaking streak.

Chris Weston, Pepperstone Group Ltd’s head of research, suggests that the key to understanding this…