Why Gold and Bitcoin have recently gained in price

Good morning! Let’s get into it!

Gold and Bitcoin have recently gained momentum, and this is a worldwide thing, so here are the reasons why:

But first, let’s explain some things

Stock market information for Bitcoin (BTC)

• Bitcoin is a cryptocurrency in the CRYPTO market.

• The price is 121720.0 USD currently, with a change of -2710.00 USD (-0.02%) from the previous close.

• The intraday high is 125094.0 USD and the intraday low is 120701.0 USD.

(Bitcoin’s current price and intraday move as a reference.)

Why is gold rising

1. Safe-haven demand / economic uncertainty
   Gold is often seen as a “store of value” during times of geopolitical or macroeconomic stress. Concerns like a potential U.S. government shutdown are pushing investors toward safer assets. (Reuters)

2. Expectations of Fed rate cuts / easing monetary policy
   If the U.S. Federal Reserve is expected to lower interest rates, that reduces the opportunity cost of holding non-yielding assets like gold. That makes gold more attractive. (Reuters)

3. Weaker U.S. dollar
   Gold is priced in dollars. When the dollar weakens, gold becomes cheaper in other currencies, increasing demand. (Reuters)

4. Strong gold demand from central banks & ETFs
   Central banks continue to diversify into gold, and there have been strong inflows into gold-backed ETFs. (Financial Times)

5. Momentum / “fear of missing out” (FOMO)
   As gold breaks new highs, more investors jump in, fueling further gains. (Financial Times)

Because of these factors, gold recently hit record levels. (Reuters)

Why Bitcoin is rising (and linking factors)

1. Institutional and crypto ETF inflows
   Big money is flowing into Bitcoin via exchange-traded products. That boosts demand and liquidity. (Reuters)

2. “Digital gold” narrative/inflation hedge appeal
   Many investors treat Bitcoin as a hedge against inflation or currency debasement — a digital alternative to gold. During times of economic stress, it can attract capital similarly to gold.

3. Macro environment & weakening dollar
   The same environment that helps gold (rate cut expectations, weaker USD) can make Bitcoin more attractive, especially if investors expect real returns above inflation.

4. Momentum / speculative buying
   Once Bitcoin breaks new highs, momentum traders and speculators may pile in, amplifying the move.

5. Regulatory/institutional legitimacy developments
   As more institutional adoption occurs or favorable regulation emerges, confidence increases, drawing more capital in.

Bitcoin recently hit a new high and drew record ETF inflows. (Reuters)

Why both are moving together lately

• They share some of the same drivers (e.g. inflation fears, U.S. dollar weakness, expectations around interest rates).

• During periods of uncertainty or distrust in fiat currencies, money can shift into alternative assets (like gold + Bitcoin).

• They each attract “safe-shelter” or “store of value” narratives when traditional assets (stocks, bonds) face stress.

Caveats & risks

• Bitcoin is much more volatile than gold, so its swings can be sharper up or down.

• Momentum runs out: markets can reverse if expectations for rate cuts or central bank behavior change.

• Overbought technical conditions (for gold or Bitcoin) can trigger pullbacks.

• Macro surprises (e.g., inflation data, monetary tightening) can shift sentiment quickly.

Yes, even in Botswana, this applies, for NewGold ETF, it closed last Friday at P517.20, remember the same week it was around P504.00 which I mentioned on Wednesday’s newsletter, showing a gain of around P13, an insane jump compared to your typical stocks that gain in Thebes weekly.

Sources

• Reuters

• Reuters

• Business Insider