Tension is gripping the market after veteran trader Peter Brandt indicated he is considering selling part of his Bitcoin (BTC) holdings and rotating into gold.

"Gold could rise more significantly than Bitcoin"

According to CoinDesk, Brandt stated on his X (formerly Twitter) account that "gold appears to have a greater potential for significant gains compared to Bitcoin," adding that he would reassess his asset allocation strategy. He explained that he is closely examining a plan to liquidate part of his Bitcoin position to increase his gold allocation.

Recently, the performance gap between the two assets has widened noticeably in the market.

Gap in correction depth and cumulative returns

In June, Bitcoin fell approximately 20%, breaking below the $60,000 level. Gold also experienced a correction, dropping 11.7% to around $4,000 per ounce. In terms of the magnitude of decline, gold took a smaller hit.

The gap in cumulative returns since the start of the year is even wider. While Bitcoin has declined about 28% year-to-date, gold has fallen only about 3.9%. This has led to assessments that gold demonstrated a relatively more defensive trend.

Reversal signal in the XAU/BTC chart

The market is also paying close attention to changes in the 'XAU/BTC' chart, which compares the price of gold denominated in Bitcoin. Following a slowdown in the downtrend that persisted since 2019–2020, the chart recently shows signs of shifting into an upward trajectory. This means the value of gold purchasable with the same amount of Bitcoin is increasing, and some analysts suggest it signals the possibility of a new cycle in which capital rotates from Bitcoin to gold.

Experts: "Too early to call a long-term trend"

Experts believe it is still too early to determine whether this shift will establish itself as a long-term trend. A wide range of variables — including changes in U.S. monetary policy, global economic outlook, the value of the dollar, geopolitical risks, and institutional capital inflows — simultaneously affect the prices of both assets.

In particular, gold, as a representative safe-haven asset, tends to show strength when uncertainty rises. Bitcoin, on the other hand, reflects both risk-asset characteristics and digital asset properties, meaning the relative strength dynamic between the two assets could shift significantly depending on the future macroeconomic environment.

[This article was written with the assistance of AI. This article does not constitute investment advice, and any losses resulting from virtual asset investments are the sole responsibility of the investor.]