"Gold is for central banks, Bitcoin is for individuals"…What’s driving the widening divergence between gold and Bitcoin

An analysis suggests that the recent divergence in price trends between gold and Bitcoin (BTC) stems from differences in the main investor base.

According to Cointelegraph on the 22nd (local time), Stephen Coltman, head of macro at 21Shares, said, "Gold’s rise is being driven by central bank buying, while Bitcoin is moving on demand centered on retail investors."

He added, "Gold is used as a state-level asset to hedge geopolitical risk and reacts more sensitively to deteriorating international relations." In fact, increased central bank gold purchases in recent years are cited as a key factor underpinning higher gold prices.

By contrast, Bitcoin is seen as functioning as an alternative asset for individuals when access to the financial system is difficult. Citing cases in which some financial infrastructure was paralyzed due to Middle East conflicts, Coltman stressed that "Bitcoin’s around-the-clock accessibility plays an important role in times of crisis."

Some in the market also argue that, given the low correlation between the two assets, holding both is necessary from a portfolio diversification perspective.

Views diverge on the outlook. Macro analyst Lyn Alden forecast that "Bitcoin could deliver a higher return than gold over the next 3 years." Ray Dalio, meanwhile, said that "because Bitcoin still has the characteristics of a risk asset, it is difficult for it to replace gold, a traditional store of value."