Gold Outperforms Bitcoin in Historic Rally But Crypto Analyst Stays Bullish on BTC Price Outlook

Gold has surged past $4,000 per ounce for the first time ever, marking a historic rally with over 50% gains this year. Meanwhile, Bitcoin (BTC) declined 1.25% and the broader crypto market, measured by the CoinDesk 20 Index, dropped 3%. This correction follows a 7.7% market surge in under a week, triggering profit-taking by whales. The divergence occurs as the U.S. Dollar Index hits two-month highs. Gold's safe-haven appeal strengthens amid political risks including France's leadership crisis, Japan's fiscal tensions, and the ongoing U.S. government shutdown delaying economic data. Gold ETF inflows accelerated to highest levels since late 2022. Bitcoin faces headwinds from dollar strength and whales moving BTC to exchanges, signaling profit-taking. Japanese government bond yields jumping to 17-year highs at 1.70% further pressure risk assets like BTC by tightening global financial conditions. Despite short-term pressures, institutional Bitcoin demand remains robust. U.S. spot Bitcoin ETFs added $3 billion last week, surpassing $60 billion total net inflows, with another $2 billion this week. S&P Global launched the Digital Markets 50 Index tracking 15 cryptocurrencies and 35 crypto equities, while ICE invested $2 billion in Polymarket. "Bitcoin's fundamental outlook stays positive with monetary easing expectations, consistent ETF inflows, and safe-haven demand," said Linh Tran, market analyst at XS.com. "Clear Fed rate-cut signals could propel BTC to new highs in Q4." Key events to watch include Hedera mainnet upgrade, Fed Governor Barr's speech, FOMC meeting minutes, and ongoing DAO governance votes for ZKSync, GMX, and Jito. BNB Chain dominates altcoin activity with PancakeSwap volume hitting $19 billion amid Chinese memecoin hype.