Gold Surges Past $4,000 as Bitcoin Falters on Strong Dollar
Over the past 24 hours, gold and Bitcoin have diverged sharply, with the greenback’s strength weighing on crypto markets.
Bitcoin (BTC) fell 2.4% to $121,340 after failing to hold gains above $126,000 earlier this week, according to CoinDesk data. The broader Coindesk 20 Index also dropped more than 4% to 4,186 points. Analysts noted that BTC faces downward pressure as the U.S. Dollar Index (DXY) climbed to 98.90, its highest level since August 5. Technical indicators suggest Bitcoin could test support near $118,000 if the selling persists.
The recent record highs were fueled by U.S.-listed spot ETFs, which pulled in over $3 billion in inflows for the week ending Friday.
Meanwhile, gold (XAU) continues to rally, breaking through $4,000 per ounce for the first time. ETF inflows are driving the momentum, with gold-backed funds reaching their highest holdings since September 2022. ING analysts noted that there is still room for growth compared with the 2020 peak, suggesting further upside potential.
Central bank purchases, geopolitical tensions, and safe-haven demand are further boosting gold. Tokenized gold products, such as PAXG, also surpassed $4,000, pushing the total market value of tokenized gold above $3 billion.
