As global liquidity and capital piles into Gold, driving a spectacular, parabolic rally, crypto watchers are closely anticipating a catch-up rally for Bitcoin. According to many analysts such as macro investor Raul Pal, gold typically moves first in major market rallies, while Bitcoin tends to catch up later in the cycle. According to Pal, this is not really about gold itself, but about where the global economy sits in the business cycle.
As Pal was recently quoted in media:
“Gold simply reflects financial conditions. When governments face rising debt and interest costs, they often inject liquidity into the system. That liquidity eventually flows through asset markets…
“Financial conditions lead liquidity, and liquidity drives asset prices. In past cycles, gold has moved first, followed by Bitcoin with a delay…
“If you compare Bitcoin and gold prices with roughly a six-month lag, their charts line up closely.”
Gold just catching up to “vacationing” Bitcoin
In a recent Linkedin post, the founder and security consultant at Bitsaga stated:
“Bitcoin might seem to be lagging behind, but don’t forget that since 2022 (right before the BlackRock ETF filing) Bitcoin is up 429%, gold 177%, Silver 350%, QQQ 140%. In other words bitcoin left everything behind so bad in ’23 and ’24 that those other assets still haven’t caught up even after having their greatest year ever and BTC seemingly being on vacation.”
However, zooming out further to 2020, Gold has outperformed Bitcoin, having risen over185%, while Bitcoin is up 164% over the same period.
What about ‘Digital Silver’?
In a recent article on Yahoo Finance, billionaire investor Tom Lee – who heads the world’s largest Ethereum treasury company (Ethereum is the crypto version of digital silver) – was quoted on his take, in which he concurs with Pal. As reported:
“A parabolic surge in gold and silver prices has drawn investor attention away from strengthening fundamentals in Bitcoin (BTC) and Ethereum (ETH)…It [is] only a matter of time before the prices of Bitcoin and Ethereum follow those of precious metals.”
The article reports that Lee said financial institutions are increasingly positioning Ethereum as a core settlement and tokenization layer, a trend he said was highlighted during discussions in Davos in 2026. “When fundamentals go ‘up and to the right,’ it’s only a matter of time before price follows,” he said.
Enter the blockchain
Meanwhile, Gold’s rally has not been limited to spot purchases out of the range of crypto-only investors. There are a variety of tokenized versions of Gold that trade 24/7 on the blockchain, including PAX Gold and Tether Gold. Similar to Gold ETFs, their advantage lies in not holding the physical product, meaning storage is easier and safer. For the tokenized versions, which can be bought on numerous crypto exchanges, further advantages include 24/7 trading and being able to purchase in small increments (you can buy $1 worth of them). In countries such as Vietnam – the recent Gold rally has literally sent a supply shock in which many stores do not have the stock to keep up with demand. Enter the blockchain – no shortages and no line ups.
As detailed on the company website of the issuer of PAX Gold:
“PAXG can be traded 24/7, without the delays and fees associated with physical gold transactions. It can be sent anywhere in the world in minutes via Ethereum. It can be used as collateral in decentralized finance protocols or integrated into automated trading strategies.
PAXG makes fractional ownership practical. Instead of needing to purchase a full 400-ounce bar – which at today’s prices can cost upwards of $1,800,000 – investors can buy any amount down to a fraction of an ounce. There are no storage fees, no insurance costs and no concerns about physical security.
At the same time, the underlying asset remains unchanged. Token holders own allocated, investment-grade gold stored in secure vaults. The tokenization process adds utility without compromising the fundamental characteristics that have made gold valuable for millennia.”