Why Are Bitcoin and Gold Rising as the Dollar Slips?

April 22, 2025 01:30 PM BST | By Team Kalkine Media
 Why Are Bitcoin and Gold Rising as the Dollar Slips?
Image source: Shutterstock

Highlights

  • Bitcoin climbed back to its highest levels since late March, reflecting renewed demand for digital assets

  • Gold reached an all‑time peak as investors sought protection amid currency weakness

  • The US dollar weakened against major global currencies, amplifying appeal of alternative stores of value

The digital currency and precious metals sector has become a focal point for market participants navigating monetary policy shifts and geopolitical tensions. Bitcoin (BTC) and gold react differently to changing currency dynamics, with each asset serving as a distinct vehicle for preserving purchasing power.

Bitcoin’s Recent Upturn

Bitcoin reversed earlier declines, advancing to levels last seen in late March. The rebound follows a period of consolidation after a dip that brought prices into the mid‑seventy‑thousand‑dollar range. Increased inflows into digital‑asset funds and renewed interest in blockchain‑based solutions underlie Bitcoin’s recovery, reflecting broader demand for decentralised and non‑sovereign assets.

Gold’s Record Advances

Gold extended its rally by reaching a fresh peak, surpassing prior highs in dollar terms. This achievement underscores the metal’s role as a traditional safe‑haven asset during periods of financial unease. Central‑bank purchases and rising demand for physical bullion contributed to elevated price levels. Gold’s performance demonstrates how precious metals respond to shifts in real yields and currency valuation trends.

Dollar’s Decline Against Major Currencies

Movements in the US dollar index have accentuated the gains in Bitcoin and gold. The greenback traded at its lowest levels since two thousand twenty‑one, losing ground against the euro, yen, and pound. This depreciation reflects changes in monetary‑policy expectations among leading central banks. A softer dollar makes dollar‑priced assets more attractive to overseas investors, while also affecting commodity and crypto markets.

Expert Perspectives on Asset Shifts

Market observers at XTB have emphasised the interplay between currency movements and alternative assets. They noted that digital currencies and precious metals often experience heightened inflows when confidence in fiat currencies wanes. Meanwhile, strategists at Bernstein highlighted Bitcoin’s relative resilience compared with major equity benchmarks, pointing out that its year‑to‑date decline remains narrower than the drop in key technology‑focused indices.

Comparative Asset Performance

Bitcoin’s recovery of nearly twenty‑percent from its recent trough contrasts with larger losses in traditional equity indexes. At the same time, gold’s ascent has outpaced most commodity and fixed‑income returns. These divergence patterns illustrate how digital and metal assets can perform differently across market cycles. As currency values shift, the comparative outlook for these stores of value continues to evolve, drawing attention from a wide range of investors.


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