After a long period in which gold beat its digital counterpart, Bitcoin (BTC) finally surpassed gold by a big margin this week.
Bitcoin outperformed gold amid a solid week for the digital currency, which rose from just over USD 19,000 on Monday to USD 21,800 as of Friday at 14:48 UTC – a gain of roughly 13%.
Gold has dropped about 3.4 percent during the same time period, after falling strongly on Tuesday and Wednesday this week. The traditional safe haven’s price has dropped from USD 1,809 on Monday to USD 1,747 at the time of writing.
Given that the economic picture remains essentially unchanged, it is unclear whether this week’s outperformance signals the start of a larger run upward for bitcoin. However, other experts suggest that the surge in bitcoin this week is due to the fact that much of the deleveraging in the larger crypto market has already occurred.
“We’ve had this enormous deleveraging, and I think the majority of that deleveraging is now out of the system,” Galaxy Digital CEO Mike Novogratz told CNBC on Thursday.
Notably, the weekly outperformance occurred despite June evidence indicating the two assets had gotten increasingly connected during the course of the month.
According to the crypto exchange’s monthly market summary for June, the growing correlation “signals a larger trend of correlations across all asset classes rising despite severe macroeconomic uncertainty.”