When will Bitcoin move to catch up with gold?

When Will Bitcoin Move to Catch Up with Gold?

The topic that investors in the financial world are keenly following is whether Bitcoin can position itself as a valuable asset like gold. Macro investor Raoul Pal stated that the recent performance of Bitcoin compared to gold is not unusual and could pave the way for a strong movement in the future.

Dynamics Between Gold and Bitcoin

Pal points out that long-term comparisons between Bitcoin and gold provide significant clues. Generally, gold tends to move first, followed by Bitcoin. The primary reason for this is the current global economic cycle.

The Role of Liquidity and Financial Conditions

Raoul Pal mentions that gold is a tool that reflects financial conditions. When governments inject liquidity into the system to cope with rising debt and interest costs, this liquidity is reflected in asset markets. Pal explains this mechanism by stating, "Financial conditions lead to liquidity, and liquidity drives asset prices."

Pal emphasizes that in past cycles, gold moved first, and Bitcoin followed it with a certain delay. By examining charts, Pal has found that Bitcoin and gold prices tend to follow similar patterns, describing the gap as a "crocodile jaw."

Investor Expectations and the Importance of 2026

Pal argues that investors have taken insufficient positions due to believing the bull cycle has ended, which could trigger a high return with potential market momentum. "If crypto moves again, investors will reassess the amount of risk in their portfolios," he says.

Pal predicts that 2026 could be a significant year for Bitcoin. His theory, dubbed "The Code of Everything," asserts that Bitcoin price movements are largely based on global liquidity. However, the expected increase in liquidity last year did not materialize, creating uncertainty in the crypto market.

Conclusion: The Relationship Between Bitcoin and Gold

Pal believes that Bitcoin lagging behind gold is a normal part of the macro cycle. If global liquidity improves, he foresees the potential for Bitcoin to close the gap, making 2026 an important year.