Gold surged to a fresh record high of $5,598 per ounce as investors continue to shift capital to safe-haven assets amid macroeconomic stress and geopolitical tensions weighing on high-risk assets like Bitcoin. Gold has continued to surge since the 2024 rally began, and now investors are speculating whether the Bitcoin price will follow suit.
Currently, investors are leaning toward traditional assets like Gold and Silver because of the U.S. dollar’s significant devaluation and other factors that are driving gold higher as a safe hedge against the dollar.
On the other hand, Bitcoin’s underperformance seems to be eroding its status as “Digital Gold.” Gold and Bitcoin are often compared because one is the oldest commodity, while the other is now considered the asset of the future.
However, while “why is gold surging” is clear, Bitcoin continues to remain in a bear grip. BTC’s struggle has intensified in 2025 as it trades nearly 30% below its ATH. The largest crypto is struggling to hold the support levels while Gold surges to a new lifetime high.
Key Drivers Behind Gold’s Rally
One of the major reasons driving the Gold rally is a weakening dollar, which fueled the debasement trade and pushed investors toward hard assets. The greenback has continued to fall against other currencies, while Gold has continued to hit record highs.
During a recent talk with reporters in Iowa, Trump was asked on Tuesday if he is worried about a declining dollar. He responded, “No, I think it’s great.” This statement by the President pushed the U.S. Dollar Index to a new four-year low.
Senior fellow at the Brookings Institution, Robin Brooks, recently commented on why is gold surging – “Dollar weakness is supercharging the rise in gold. It was only on Sunday night that we went above $5,000, and today we’re already above $5,200. Dollar weakness is adding fuel to the fire for the crazy rise in precious metals…”
Dollar weakness is supercharging the rise in gold. It was only on Sunday night that we went above $5,000 and today we're already above $5,200. Dollar weakness is adding fuel to the fire for the crazy rise in precious metals…https://t.co/u358ES9y2d pic.twitter.com/jzQ3c7vqCk
— Robin Brooks (@robin_j_brooks) January 28, 2026
Geopolitical risks have also created significant uncertainty, as global risks push investors toward safer assets. Central banks continue to buy bullion while cutting back on government bonds, adding steady support to the rally. Tensions escalated further on Wednesday after President Trump warned that the U.S. could take military action against Iran. Amid war conditions, precious metals like gold gain value while risk assets like equities and cryptocurrencies see a sell-off.
Gold Leads as Bitcoin Lags in 2026
Since the start of 2026, Gold has surged barely 30% while Bitcoin is still trading in negative territory, with short-term price action remaining highly bearish.
Many crypto enthusiasts highlight Bitcoin’s potential as a decentralized, futuristic alternative to Gold, but in recent months, there has been a significant divergence in price trends. While Gold has hit several record highs, BTC continues to trade in a lower-low pattern, losing over 30% of its market cap from its previous all-time high.
Source: TradingEconomics
Despite Bitcoin’s limited supply and widespread adoption over the past few years, it has not matched investor confidence in the precious metal.
Rising geopolitical tensions, dollar devaluation, and inflation concerns have significantly contributed to the rise of gold and other precious metals, while the opposite has held for high-risk assets like Bitcoin.
Bitcoin Price Outlook: Will Bitcoin Follow Gold?
Despite strong accumulation from corporate treasuries and hitting the $100,000 psychological mark, Bitcoin’s performance has declined since President Trump won the 2024 election, and it seems hard to replicate the gold-like rally for Bitcoin in the near term. It is trading 20% below the 2024 high.
After its recent attempt to regain the $90,000 support level failed, the price has plunged to $88,000. The Bitcoin price has been in a channel since November 2025, with support at its lower trendline. It has struggled to break above or below the $85,000-$98,000 range, extending its consolidation streak amid uncertain market sentiment.
Image Courtesy: TradingView
Bitcoin is showing signs of weakness near a major support area. The price has begun to form a bearish flag pattern, which often signals fading buying pressure. This setup suggests the Bitcoin price could continue sliding toward the $85,000 level in the near term.
If sellers push the price below $8,000, the decline may deepen toward $75,000, a major support zone. That area could attract buyers again, creating room for a rebound back into the $75,000–$100,000 range. A strong move above $100,000 would restore bullish momentum and open the door for further gains.
