Decoupling Again? Bitcoin Retains Its Gains as Gold Hits Monthly Low
Gold prices fell to a monthly low of $3,185 per ounce, down 9% from an all-time high of $3,500 in mid-April. In contrast, Bitcoin's price increased by 17% to $103,600 from $88,200 during the same period. The shift in investor preference towards risk-on assets like Bitcoin is attributed to easing trade tensions between the U.S. and China, with both countries reducing tariffs significantly. The U.S. lowered levies on Chinese imports from 145% to 30%, while China cut tariffs on American goods from 125% to 10%. Despite Bitcoin's recent strength, gold has outperformed it year-to-date, with gains of 23% compared to Bitcoin's 10%. Concerns over U.S. dollar debasement have enhanced Bitcoin's image as a safe haven. Chinese gold ETFs saw record inflows of $6.4 billion in April, driven by trade war concerns, but demand may cool with ongoing trade de-escalation. Spot Bitcoin ETFs experienced significant inflows, reaching a new high of over $41 billion since their debut.
