Data insights show that Bitcoin (BTC) and Ethereum (ETH) have followed the trend set by gold as the haven asset gradually moves higher towards its all-time high. The major cryptos followed gold’s rally with just a short lag. Any pump for gold may push the flagship token above $11,000.
For the past two months, Ethereum and Bitcoin have traded within a tight range while the altcoins enjoyed an impressive rally. That may all be set to change as the two crypto majors pushed out of their respective price ranges and the DeFi tokens begin to appears a bit weak.
Bitcoin, Ethereum, and Gold price action. Source: TradingView
The two biggest cryptocurrencies followed in the footsteps of the precious metals, starting an uptrend around 24 hours after silver and gold. Investors are closely monitoring gold with laser focus as the precious metal moves closer to breaking its all-time high at $1,921 per troy ounce.
If gold closes the month above $1,825, it might become the first time in history that the metal closes a monthly candle above that region. All that is left for the asset is to break above its only remaining barrier, after that gold will go in a full-blown price discovery mode.
As gold breaks and aims for new highs and Bitcoin follows, the case for a persistent correlation between the two assets is highly likely. Bitcoin has followed the haven asset move for move in the past several days. An improved outlook for gold may shift capital inflows from the risk-on assets like the stocks to the risk-off assets like gold.