Gold tops $4,000 for the first time ever… Despite Bitcoin's decline, "fundamentals still positive"

Gold (Gold) has surpassed $4,000 per ounce to reach an all-time high, while Bitcoin (BTC) fell 1.25%, showing a broad risk-asset correction. However, experts said, "Despite short-term adjustments, Bitcoin's fundamentals remain strong."

On the 8th (local time), according to CoinDesk, Bitcoin was trading around $123,000, down 1.25% in a day. The CoinDesk20 (CD20) index, which represents the entire virtual asset (cryptocurrency) market, fell 3%. Analysts attribute this to profit-taking after a 7.7% surge over the past week.

Meanwhile, the safe-haven asset gold has risen more than 50% this year and crossed $4,000 per ounce for the first time. Dutch ING Bank said, "Amid political uncertainty and expanded global fiscal risk, inflows into gold exchange-traded funds (ETFs) have increased to their highest level since the end of 2022."

In particular, political turmoil in France, fiscal policy instability in Japan, and a U.S. government shutdown entering its second week appear to have driven investors' preference for safe-haven assets.

Bitcoin is traditionally seen as a hedge against uncertainty, but recent dollar strength and selling by short-term holders ('whales') have stalled its rally. In addition, Japan's 10-year government bond yield reached 1.70%, its highest in 17 years, rattling global bond markets and weakening risk-on sentiment.

Goldman Sachs said, "The rise in Japanese government bond yields could spill over into major bond markets such as the U.S. and Europe," adding, "This could tighten global financial conditions and limit the upside for risk assets like Bitcoin."

Nevertheless, institutional demand for Bitcoin remains solid. According to data firm SoSoValue, U.S.-listed spot Bitcoin ETFs saw inflows of more than $3 billion last week, pushing cumulative net inflows past $60 billion. About another $2 billion was recorded as inflows this week.

Market analyst Lin Tran said, "Expectations of rate cuts, steady ETF inflows, and safe-haven preferences are supporting Bitcoin's rise," adding, "If the Federal Reserve (Fed) clearly signals a shift toward easing at upcoming meetings, Bitcoin is very likely to move into a new price range during the fourth quarter."