This week, Bitcoin (BTC) finally outpaced gold by a big margin, following a lengthy period in which gold greatly outperformed its digital counterpart.
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 around 13 percent.
Over the same time frame, gold has lost around 3.4%, after a steep decline on Tuesday and Wednesday of this week. At the time of writing, the price of the traditional safe haven plummeted from USD 1,809 on Monday to USD 1,747.
This week’s outperformance of gold by bitcoin occurred after the yellow metal proven to be a much superior investment for the most of this year.
Given that the macroeconomic outlook has remained mostly unchanged, it is uncertain if bitcoin’s outperformance this week signifies the beginning of a larger bull run. Nonetheless, other commentators have claimed that bitcoin’s surge this week is due to the fact that the majority of the deleveraging in the larger crypto market has already occurred.
Mike Novogratz, CEO of Galaxy Digital, told CNBC on Thursday, “We’ve seen this huge deleveraging, and I believe that most of it have now left the system.”
Notably, the weekly outperformance occurred despite indications from June that the two assets had grown increasingly connected over the course of the month.
The heightened connection “indicates a larger trend of correlations across all asset classes growing under severe macroeconomic uncertainty,” crypto exchange Kraken said in its June market report.