Gold is just a little away from the $4,000 mark: What does this mean for Bitcoin?

The gold price has approached the all-time high of (ATH) at 4,000 USD, as investors turn to safe assets — a trend that is also sending positive signals for Bitcoin.

According to data from TradingView, the futures price of gold first hit the threshold of 4,000 USD per ounce on Tuesday morning, while the spot price reached a new all-time high of 3,976 USD.

"Gold is currently at a new all-time high," Peter Schiff, a gold advocate and Bitcoin critic, stated on Tuesday. "This is a clear warning that the current policy of the Federal Reserve (Fed) is mistaken," he emphasized, while calling for the U.S. central bank to "immediately reverse course" and raise interest rates.

This year, gold has experienced strong growth, rising more than 50% since January 1, amid increasing geopolitical tensions, concerns about trade taxes, global inflation, and the depreciation of fiat currencies.

During the same period, gold outperformed Bitcoin with a price increase of only 33.5%. However, the price of Bitcoin has shown a tendency to follow gold, albeit with a delay, which may signal a strong price increase towards the end of the year.

Bitcoin will outperform gold

"The all-time high of gold reflects the demand from investors for scarce assets. We believe that from here, Bitcoin will become the better-performing asset of the two," Henrik Andersson, director of Apollo Capital, shared on Tuesday.

"The fact that gold reached 4,000 USD is just another confirmation of the same supportive momentum for BTC," said Justin d'Anethan, head of partnerships at the cryptocurrency private market company Arctic Digital.

This move can be seen as a "mutual confirmation," as both assets react to common concerns: the uncontrolled budget deficit of the U.S., the weakening of the dollar's reliability, and the increase in geopolitical hedging, he added:

"Gold is a familiar asset that is deeply ingrained in traditional financial setups. Bitcoin is more volatile because it operates 24/7, is scarcer, and clearly has a longer-term vision.”

The correlation between Bitcoin and gold

Bitcoin is currently lagging behind gold and the global M2 money supply, and "there should be an adjustment," analyst James Bull noted on X.

Last week, analyst and trader Ted Pillows stated that Bitcoin has a strong correlation with gold with a lag of about eight weeks.

When gold reaches a new high, Bitcoin will follow, he added, "We may witness another correction, but overall Q4 will be very positive for Bitcoin."

Last week, Coinphoton reported that Bitcoin has regained its correlation with gold, as both assets are close to or have reached their all-time highs. Bitcoin recorded an all-time high of over 126,000 USD in late trading on Monday.

Even without delays, the price surge of BTC is starting to catch up with gold | Source: TradingView### Bitcoin could reach seven figures

David Marcus, co-founder and CEO of Litespark, also a former PayPal director, compared the two assets, stating on Monday that if Bitcoin were valued like gold, it would be worth up to 1.3 million USD.

"It has proven to be a better store of value, and its payment utility has yet to be priced in. Bitcoin surpassing the seven-figure threshold is just a matter of time."

Mr. Teacher