Gold soars to a new high of $4420, is the long-term value narrative of Bitcoin facing a new test?

On December 22, 2025, the international gold price surpassed $4420 per ounce, setting a new historical high. Against the backdrop of recurring inflationary pressures, rising geopolitical risks, and continuous accumulation by global Central Banks, gold once again demonstrates its core position as a traditional safe-haven asset. The intensifying macroeconomic uncertainty is driving funds to accelerate their flow towards assets with stronger risk resistance.

As gold rises strongly, it has rekindled discussions in the market about the long-term appeal of Bitcoin (BTC). As a cryptocurrency known as “digital gold,” whether Bitcoin can benefit from the asset allocation adjustments triggered by the rise in gold has become the focus of investors. Some market views suggest that during the phase of high gold prices, some funds may gradually shift towards Bitcoin, which is relatively undervalued, thereby reinforcing its long-term allocation value.

This discussion has further heated up due to rumors about Kazakhstan's reserve strategy. Reports suggest that the country may sell part of its gold reserves when gold prices are at historical highs and plans to allocate up to about $300 million to Bitcoin and other crypto assets. If true, this would reflect a more aggressive national asset management approach, aiming to take profits on traditional safe-haven assets at high levels while positioning in advance during the Bitcoin price correction phase to seek long-term growth potential.

From the market sentiment perspective, the position of Bitcoin in the minds of long-term investors is changing. A recent poll initiated by well-known gold advocate Peter Schiff shows that among Bitcoin, gold, and silver, 62.4% of respondents prefer Bitcoin as a long-term single investment target. This result reflects that, compared to traditional precious metals, an increasing number of investors are more optimistic about Bitcoin's growth potential in the coming years.

However, from a historical data perspective, there is no stable “rotation pattern” between gold and Bitcoin. Analysts point out that a new high in gold does not necessarily mean that funds will flow massively into Bitcoin. In some cycles, the movements of the two are synchronized, while in other stages they behave divergently. Therefore, the new high in gold prices should be seen more as a signal of changes in macro risk appetite, rather than a direct trigger for the rise of Bitcoin.

Overall, the roles of gold and Bitcoin in asset allocation are becoming increasingly clear: gold leans towards defense, while Bitcoin has more long-term growth attributes. In an environment marked by high inflation and global uncertainty, both may coexist for a long time, catering to investors' different needs for security and growth.