Bitcoin BTC/USD is stealing gold's thunder this week.

After soaring more than 6% in 24 hours, Bitcoin reclaimed the $94,000 level. The lift was driven by a renewed "digital gold" narrative, courtesy of what Unity Wallet's James Toledano calls "renewed institutional enthusiasm."

Another catalyst was a monster $912 million inflow into U.S. spot Bitcoin ETFs on Tuesday — the biggest in three months.

While some chalk the rally up to macro calm — including a weaker dollar and tariff de-escalation from President Donald Trump — Toledano flags that Bitcoin is also riding a "surge in safe-haven investing in both gold and bitcoin concurrently." Yet, he adds a warning label: "We shouldn't get too excited… the surge is short-lived" if ETF activity isn't backed by broader demand. Investors might want to stay "cautiously optimistic."

Bitcoin = Store Of Value + Inflation Hedge

According to Toledano, institutions increasingly treat Bitcoin as a store of value and an inflation hedge. That sentiment is being reinforced by capital outflows from traditional markets. "We're currently seeing a flight of capital from U.S. markets… Bitcoin represents an attractive alternative."

But let's not crown Bitcoin just yet, as Toledano reminds investors that volatility hasn't vanished. "Short-term corrections are likely… pullbacks could be healthy to avoid a bubble like Dec. 2024/Jan. 2025."

As long as ETF flows and macro support hold, the six-figure dream is still alive, but expect bumps along the way.

Meanwhile, Gold's Glory Fades, For Now

Gold, on the other hand, just pulled back 2% after briefly touching a record $3,500 an ounce. Risk-on sentiment surged after Trump signaled progress with China tariffs and reaffirmed support for Fed Chair Jerome Powell. As Blue Line Futures' Phillip Streible puts it: "You’re going to see a broad rotation out of some of the safe haven assets back chasing some of the specific names like Apple, Tesla."

Yet gold bulls shouldn't panic. Saxo Bank's Ole Hansen points out that despite the "blowout top around $3,500 and sharp reversal," the yellow metal "has so far managed to find support at $3,292," suggesting a mere pause within a broader uptrend.

Bitcoin may be having its moment, but gold's story isn't over. This safe haven standoff is far from settled.

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