Gold Surges Past $4,000 While Bitcoin Pulls Back Amid Dollar Strength
Bitcoin and gold diverged sharply over the past 24 hours as the U.S. dollar strengthened.
BTC fell 2.4% to $121,340 after failing to sustain a breakout above $126,000 earlier this week, according to CoinDesk data. The Coindesk 20 Index also dropped over 4% to 4,186 points, reflecting broader weakness across major cryptocurrencies.
The pullback coincides with the U.S. Dollar Index (DXY) climbing to 98.90, its highest since August 5. Historically, a stronger dollar weighs on USD-denominated assets like Bitcoin, and technical analysis suggests BTC could test support around $118,000 if selling pressure continues.
Earlier this week, Bitcoin hit record highs, boosted by U.S.-listed spot ETFs that drew over $3 billion in inflows for the week ending Friday.
Gold Extends Rally on ETF Demand
Meanwhile, gold surged past $4,000 per ounce for the first time, supported by heavy inflows into gold-backed ETFs. ING analysts highlighted that ETF holdings reached their highest level since September 2022, with further additions likely to push prices higher.
Gold has doubled in value over the past two years as central banks diversify reserves away from the U.S. dollar. Geopolitical risks—including trade tensions and conflicts in the Middle East and Ukraine—have further strengthened demand.
Gold-backed tokens, such as PAXG, also climbed above $4,000, with the total market capitalization of all tokenized gold surpassing $3 billion.
About The Author
More Stories
Despite 5% Losses in ETH, XRP, and SOL, Bitcoin Bulls Still Target $140K by Month’s End
Is an XRP Pullback Coming? Token Posts Successive ‘Lower Highs’ Amid Bitcoin Strength
“DOGE Falls 8% Before Whale Purchases Halt Decline at $0.25”