Charts: Bitcoin's Golden Price Streak Comes to a Close

Bitcoin prices surpassed those of gold earlier this month, but the digital asset failed to maintain this position for long, data reveals.

Apr 1, 2017 at 9:30 a.m. UTC
Updated Sep 14, 2021 at 1:57 p.m. UTC
Layer 2
CoinDesk - Unknown

Bitcoin turned heads this month when its value exceeded the price of gold, but just weeks later, the digital asset has fallen off the pace.

The digital currency surpassed the per-spot ounce price of gold on 2nd March, when it traded for $1,238 and gold was listed at $1,237 on the XAU/USD spot exchange rate provided by Bloomberg Markets.

The event marked the second time in history bitcoin was worth more than gold. This time round, bitcoin was trading high amid optimism that the SEC could soon approve a bitcoin ETF for retail investors.

Still, bitcoin didn't enjoy this superior position for long. According to the CoinDesk Bitcoin Price Index (BPI), prices have fallen sharply since the eventual rejection – a trend that continued amid uncertainty about the future of its technical roadmap.

Days of glory

Overall, bitcoin's price managed to trade higher than gold until 7th March, when prices fell below $1,200, BPI figures show. Gold prices, in comparison, closed at $1,215.86, according to Bloomberg data.

Bitcoin once again surpassed gold on 10th March, the day of the SEC decision, when its price surged to an all-time high of more than $1,300.

CoinDesk - Unknown

However, as the SEC rejected the proposed fund, bitcoin prices plunged, nearing $1,000. As a result, bitcoin once again traded south of gold, which closed the day at $1,204.64.

Bitcoin again popped up to surpass the precious metal on 12th and 16th March. The digital currency didn't stay north of gold for long, and it fell below its precious metal counterpart later on 16th March.

Watch this space

With the prices diverging, it may be that this ends the latest attempt for the digital currency to live up to its often-used descriptor, 'digital gold'.

In fact, though, bitcoin and gold have frequently shown little relationship in terms of their price movements.

While the two assets have frequently displayed a strong price correlation during times of economic crisis, this relationship has often deteriorated once economic conditions calmed down. (A prior analysis of gold and bitcoin prices conducted by ARK Invest's Chris Burniske failed to reveal a strong relationship between bitcoin and gold.)

Still, today there are several retail products that investors can use to trade gold. Bitcoin, on the other hand, lacks such securities.

As a result, the bitcoin-gold price relationship could change quite a bit going forward – and remains one to watch.

Gold bars image via Shutterstock

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
San Francisco NFL Player Alex Barrett Taking His Salary in Bitcoin

The most valuable crypto stories for Thursday, May 20, 2022.

The most valuable crypto stories for Thursday, May 20, 2022.

CoinDesk - Unknown
2
CoinDesk - Unknown
Justin Sun Still Thinks Algorithmic Stablecoins Are a Good Idea

The crypto mogul also said LUNA and UST might make good "meme coins," he said on CoinDesk TV’s “First Mover.”

The crypto mogul also said LUNA and UST might make good "meme coins," he said on CoinDesk TV’s “First Mover.”

CoinDesk - Unknown
3
CoinDesk - Unknown
Former BitMEX CEO Arthur Hayes Sentenced to 2 Years Probation

Hayes pleaded guilty to one count of violating the Bank Secrecy Act (BSA) in February, and faced a sentence of up to 12 months in prison.

Hayes pleaded guilty to one count of violating the Bank Secrecy Act (BSA) in February, and faced a sentence of up to 12 months in prison.

CoinDesk - Unknown
4
CoinDesk - Unknown
Market Wrap: Cryptos Decline Amid Choppy Trading, DeFi Tokens Underperform

Aversion to risk remains as volatility returns to stocks and cryptos.

Aversion to risk remains as volatility returns to stocks and cryptos.

CoinDesk - Unknown