Bitcoin (BTC) May Have Just Got a New Hedge Against Gold (XAU)

What may or may not have been a blow-off top last week in the price of gold appears to have benefitted bitcoin (BTC) and that trend could be set to continue.

Bitcoin (BTC) has benefitted from what may or may not have been a blow-off top last week in the price of gold, and that trend could be set to continue, Standard Chartered's Geoff Kendrick told Real Vision.

Already among the best-performing global assets in recent months, gold's rally powered to new highs in the weeks following President Trump's Liberation Day tariffs in early April.

The price ultimately peaked above $3,500 per ounce on April 21, with bitcoin at the time being sold at $87,000 — roughly flat from Liberation Day, but lower by about 20% from its record high hit in January.

Since, though, gold has tumbled nearly 10% to its current price just above $3,200 per ounce. At the same time, bitcoin has rallied about 10% to a two month high of $97,000.

"I think bitcoin is a better hedge than gold against strategic asset reallocation out of the U.S.,” said Kendrick, who is the bank's head of FX strategy.

Kendrick noted that the ETF inflow situation has flipped with the price, with money going into bitcoin funds now flowing at a fast clip while that headed into gold funds has slowed to a trickle.

"The last time we saw bitcoin ETF inflows in such a wide margin over gold was the week of the U.S. presidential election. Two months later, the price of bitcoin had risen more than 40% to above $100,000."