Physical Gold vs. Digital Gold: XAUUSD Slips as BTC Breaks $90K

Bitcoin (BTC) price has surged above $90,000 for the first time in nearly two months. Institutional inflows and political uncertainty in traditional markets drive this surge, and strong demand data backs this rally. The chart below shows that the US spot Bitcoin ETFs recorded $381.40 million in inflows on Monday and $719.20 million on Tuesday. These levels are the highest single-day total since January 2025.

Moreover, MicroStrategy added further momentum by purchasing 6,556 BTC for $555.8 million, highlighting the bullish case. These major institutional moves reflect growing investor confidence in Bitcoin as a store of value amid rising volatility in traditional markets.

On the other hand, political instability also played a role in this decisive move. President Trump’s criticism of Fed Chair Jerome Powell created fears of policy interference. His remarks pushed the US Dollar Index to a three-year low of 97.923 and spooked bond markets, with 10-year Treasury yields rising above 4.4%. These developments weakened fiat and bond stability confidence, pushing capital into Bitcoin and gold XAU). Trump’s comments about not firing Powell caused gold prices to drop sharply, but Bitcoin remained elevated at higher levels.

Furthermore, the appointment of Paul Atkins as the new SEC Chair added to the positive momentum. Atkins promised regulatory clarity for digital assets. His support for innovation and less restrictive oversight boosted optimism among crypto investors, especially around the future of ETFs and DeFi. In summary, Bitcoin’s increase is rooted in strong institutional buying, macroeconomic instability, and a shifting regulatory outlook. If these trends hold, Bitcoin could soon test new record levels.

Bitcoin vs Gold – Digital Asset Rallies as Traditional Safe Haven Pulls Back

Bitcoin and gold show diverging trends despite being considered safe-haven assets during the latest trade crisis. Amid political uncertainty and ETF inflows, Bitcoin surged above $90,000, while gold reached a high of $3,500 before correcting lower. This correction occurred as investors moved away from gold in response to easing rate cuts while they continued buying Bitcoin. This shift highlights the growing preference for digital assets over traditional hedges in volatile conditions.

Bitcoin-to-Gold Ratio Turns Bullish, Signals Strength in BTC

The weekly chart below shows that the Bitcoin-to-gold ratio turns upward after correcting from the 40 level. This turn indicates that Bitcoin is gaining strength relative to gold. It also suggests a possible investment shift toward Bitcoin, as gold has reached overbought levels. The emergence of an inverted head and shoulders pattern on the weekly chart signals that a break above 40 could trigger a strong Bitcoin rally, similar to the moves seen in 2016 and 2020.

Falling Gold-to-Bitcoin Ratio Hints at Imminent Bitcoin Rally

To further understand the above condition, the monthly chart for the gold-to-bitcoin ratio shows a decline from the strong long-term resistance at 0.04. The ratio forms a descending channel, and historically, when the ratio hits this channel, Bitcoin prices bottom and begin a strong surge. Similarly, gold prices tend to follow Bitcoin’s rally afterwards. In this case, the ratio is correcting lower toward the pivotal level. A break below 0.026 could trigger a strong surge in Bitcoin prices.

Bitcoin (BTC) Analysis – Bullish Patterns Point to Breakout Toward $115K

The weekly chart below shows that Bitcoin has bottomed within the $65,000 to $75,000 support zone and initiated a strong surge higher. The emergence of a bullish hammer in this zone signals a key reversal, suggesting a potential move toward the $105,000 to $115,000 target. The chart highlights a bullish cup pattern within an ascending channel, indicating that the next move in Bitcoin is likely higher.

The daily chart for Bitcoin further confirms the strong bullish rally after forming a double-bottom pattern. The price remains above the 50-day and 200-day SMAs, reinforcing the possibility of an extended upward move.

Gold (XAUUSD) Analysis – Strong Rally Pauses at $3,500 Resistance.

The weekly chart for gold shows that the price formed an inverted head and shoulders pattern before breaking the long-term pivot at $2,075. After this breakout, gold entered a bullish phase, forming consolidation patterns before each surge to new record highs. A breakout above $2,800 triggered a strong rally, with the price rising despite overbought conditions. This move reached the projected target of $3,500, where the price is now consolidating.

For gold to rally further above $3,500, it needs a decisive breakout above this level, which may require more consolidation or a short-term correction. However, ongoing trade uncertainties are adding pressure to global markets. If gold breaks above $3,500, it could reach the $3,600 and $4,000 levels.