- Binance’s CZ reignited the Bitcoin vs. gold debate, claiming gold can’t beat Bitcoin because it isn’t a limited supply asset.
- As gold’s rally cools and Bitcoin rebounds, the two assets show signs of decoupling in both performance and perception.
As gold’s record-setting rally starts to cool, Binance founder Changpeng Zhao—known simply as CZ—has reignited the long-running debate between gold and Bitcoin. In a brief but pointed post on X (formerly Twitter), CZ stated, “Not against gold, but it’s not a limited supply asset.” The remark echoed loud and clear through the financial world, sparking fresh discussion about the true store of value in an era of economic uncertainty.
Gold, once again hailed as a safe haven earlier this year, surged to an all-time high of $3,500.05 in April. But it didn’t last. As trade tensions between the U.S. and China eased and strong U.S. jobs data rolled in—nonfarm payrolls jumped by 177,000 versus an expected 130,000—investors pulled back. Spot gold slid 0.4% on Friday to $3,228.50, capping a 2.6% weekly drop.
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The recent dip is more than a market blip; it’s a sentiment shift. As geopolitical risks fade and the Fed holds off on rate cuts, traditional safe-haven demand is softening. “Gold looks like $3,500 may be a top for a little while,” said Daniel Pavilonis of RJO Futures, hinting that gold’s fear-fueled momentum may be running low.
Meanwhile, Bitcoin is quietly climbing. Although it hasn’t matched gold’s 26% rise this year, it’s bounced back nearly 20% since April 8. That’s more than can be said for the S&P 500, which remains down over 6% year-to-date. Bitcoin’s resurgence is renewing comparisons to gold—but the numbers say the two are drifting apart.
According to CNBC, the 25-week correlation between gold and Bitcoin dropped to -0.42 in March—its lowest since 2020—signaling a growing divergence. While gold responds to macroeconomic fear, Bitcoin is now acting more like tech. Geoff Kendrick of Standard Chartered even suggests Bitcoin should be viewed as “both an additional big tech stock and as a hedge against traditional finance.”
CZ’s message was simple: scarcity matters. And in the digital age, Bitcoin’s hard cap of 21 million may just give it the edge over gold’s uncertain supply.
