The bitcoin rally was catalyzed by microeconomic factors at the end of 2023, but may have recently fused into the more macroeconomic-fueled gold rally, according to Wolfe Research. The yellow metal is up 5.7% in March, which accounts for most of its 6% gain over the past month. On Friday, it hit record highs for a fourth consecutive session. Bitcoin has also been trading at record highs this week, after hitting new all-time highs on both Tuesday and Friday. It's up 8% in March.
Those factors are likely adding to the recent strength in gold too, she said. Gold is widely seen as a safe haven asset and inflation hedge, a narrative many also ascribe to bitcoin, sometimes known as "digital gold." However, also like bitcoin, it doesn't always behave that way, said Marion Laboure, macro strategist at Deutsche Bank. "Gold fell 21% from March to November 2022, while core CPI averaged 6.2% and the S & P 500 fell 11%," she said.