Gold Hits New All-Time High: Experts Weigh In on Its Correlation with Bitcoin
- The Golden Rally: Breaking Records in 2025
- Liquidity Waves Moving Markets
- Bitcoin's Delayed Reaction Pattern
- The Bearish Counterargument
- The Reserve Currency Shuffle
- FAQ: Gold and Bitcoin Dynamics
As gold surges to unprecedented levels, analysts are fiercely debating whether this signals a warning for crypto or foreshadows Bitcoin's next major move. With gold breaking $3,500 and bitcoin showing volatility, the relationship between these two assets reveals fascinating market dynamics in September 2025.
The Golden Rally: Breaking Records in 2025
Gold traded at $3,482 as of September 2, 2025, after establishing a new all-time high of $3,508 earlier that day.
Source: TradingView
Alpha Extract notes this gold rally isn't occurring in isolation. "There's a recurring pattern this cycle: when gold starts running, Bitcoin often consolidates, and vice versa," their analysis states. The firm highlights multiple forces driving gold upward, including concerns about Federal Reserve independence, fiscal policy risks, and rising 30-year yields in global markets.
Liquidity Waves Moving Markets
Global liquidity increased by $0.13 trillion last week (+0.09%), which Alpha Extract identifies as the primary driver for risk assets. While some short-term momentum indicators show weakness, they argue the cycle peak hasn't arrived yet. Medium-term models have turned negative, suggesting caution, but reversal patterns approach oversold levels, potentially signaling an inflection point for risk appetite.
Bitcoin's Delayed Reaction Pattern
Martyparty, a macroeconomic analyst, observes: "Gold and global liquidity lead; Bitcoin follows." This suggests BTC could benefit once gold's bull run stabilizes. MacroScope adds that when Gold previously reached the $3,400-$3,500 range earlier in 2025, Bitcoin initially retreated before rallying to new highs. "Gold is screaming that we should go long on BTC after this pullback," they noted.
The Bearish Counterargument
Not everyone sees gold's rise as positive for crypto. Bitcoin critic Peter Schiff argues gold's gains come at BTC's expense: "Gold is up nearly $30, approaching $3,480. Silver's up over 70 cents nearing $40.50. Meanwhile Bitcoin fell below $108,000 and looks ready to drop further. Gold and silver breaking out is very bearish for Bitcoin."
The Reserve Currency Shuffle
Former Coinbase executive Balaji Srinivasan points to dollars comprising just 42% of global reserves while gold gains ground. "This highlights why gold is rising—and why Bitcoin could be next," he tweeted on September 1, 2025, suggesting both assets may play larger roles in a changing financial order.
FAQ: Gold and Bitcoin Dynamics
Why is gold hitting record highs in September 2025?
Multiple factors including Federal Reserve policy concerns, fiscal risks, and global liquidity increases ($0.13 trillion last week) are driving gold's rally.
How does gold's performance affect Bitcoin?
Analysts are divided. Some see a lead-lag relationship where Bitcoin follows gold's moves, while others believe they compete for safe-haven flows.
What was Bitcoin's price when gold hit $3,508?
Bitcoin traded below $108,000 when gold achieved its $3,508 ATH on September 2, 2025.
Are gold and Bitcoin correlated?
Their relationship fluctuates. Sometimes they MOVE inversely (when one rallies, the other consolidates), while during macro crises they may correlate as hedges against dollar weakness.
What does the dollar's reserve status have to do with this?
As dollars decline to 42% of global reserves (per Balaji Srinivasan), both gold and Bitcoin potentially benefit as alternative stores of value.
