The recent rally in gold looks spectacular, but the real drama is actually paving the way for Bitcoin.

Many Bitcoin holders are now watching gold prices soar and can't help but feel a bit anxious: Why hasn't my coin moved yet? Don't worry, this precisely indicates that you haven't understood what the market is playing.

Behind every rise in gold, there is a single signal being sent: the demand for asset protection and anti-inflation measures is unprecedentedly high. And this force will ultimately flow into Bitcoin. This is not a guess; it is the market's inevitable logic.

**So why is gold going crazy?**

This year's gold performance has indeed been shocking. Prices surged to $4,357 per ounce, with a market cap soaring to $30 trillion — a new all-time high. Compare that to Bitcoin, with a market cap of about $2.1 trillion — gold's size is more than 14 times that.

But here’s a key detail: what’s driving up gold prices isn’t retail investors buying sporadically, but global central banks systematically increasing their holdings.

Data speaks volumes. In 2024, global central banks net bought 1,045 tons of gold, marking the third consecutive year of purchases over a thousand tons. Entering 2025, central banks from countries like Poland and Kazakhstan are still actively accumulating.

**Why are central banks so aggressively stockpiling gold?**

Looking at each country's gold reserves ratio makes it clear. In the US foreign exchange reserves, gold accounts for 77.85%. Meanwhile, China’s central bank’s gold reserves only make up 6.7% of its total foreign exchange assets.

This gap indicates that emerging market countries still have huge room to increase their holdings. Central banks around the world are desperately adding to their gold allocations, which sends us a clear signal: the traditional financial system is quietly repositioning assets.