Bitcoin Falling While Gold Reaches Historic Peak: Analysis

The price of Bitcoin has declined due to the strengthening of the dollar index, while gold has reached a historic peak by surpassing the $4,000 threshold for the first time per ounce. Bitcoin, which set a new record by exceeding the $126,000 level earlier this week, has fallen 2.4% in the last 24 hours to $121,340. The strengthening of the dollar generally puts downward pressure on dollar-denominated assets, particularly on the prices of Bitcoin and gold.

According to analysts, the current chart outlook for Bitcoin carries the possibility of a pullback to $118,000. Bitcoin showing signs of stagnation this week has redirected investors' attention towards gold. The rise in gold prices is seen as a result of strong demand for gold-backed exchange-traded funds (ETFs).

According to a report by ING analysts, investments in gold ETFs have reached a record high recently. The assets in gold ETFs have reached the highest level since September 2022, but still remain below the record levels of 2020. ING predicts that these new inflows could further increase gold prices. Over the last two years, the price of gold has doubled, with efforts by central banks to reduce their reliance on the dollar and international geopolitical tensions playing a significant role in this process.

Additionally, the value of gold-backed tokens like PAX Gold (PAXG) and Tether Gold (XAUT) has also surpassed the $4,000 limit, increasing investor interest. The total market value of gold-themed tokens is currently above $3 billion. This opposite movement between gold and Bitcoin once again highlights the need for investors to pay attention and analyze market trends.

Investors should formulate trading strategies considering the potential pullback of Bitcoin and closely monitor the upward trend in gold.