Bitcoin Surges: Is BTC Outperforming Gold and Stocks?

Bitcoin has once again attracted attention after recording a Bitcoin rally of around 23% in one week through August 21, 2026. 

BTC moved from around US$60,000 in early July to approximately US$78,000, while gold prices also strengthened and the US stock market recorded weekly declines.

This movement is notable because Bitcoin is usually still considered a risk asset with a relatively high correlation to technology stocks. However, during the latest rally, BTC has behaved more like gold, particularly as concerns over the US dollar, government debt, and bond market conditions have increased.

So, between Bitcoin vs gold and Bitcoin vs stocks, which is stronger? And is Bitcoin's rise today the beginning of a new trend or merely a short-term rally?

Key Takeaways

• BTC rose around 23% in one week through August 21 and around 30% since early July, reaching the US$78,000 area.
• During the same period, Bitcoin significantly outperformed gold and US stock indexes, although BTC volatility remains much higher.
• The rally structure appears healthier because the share of borrowed funds or leverage has declined, although investors still need to monitor ETF flows, the dollar, bond yields, and price momentum.

Why Did Bitcoin Rise Sharply in August 2026?

One of the main catalysts behind the latest BTC rally is a shift in sentiment toward US fiscal policy and the bond market.

On August 19, US Treasury Secretary Scott Bessent announced plans to increase purchases of long-term US government bonds. 

The policy initially pressured Treasury yields, while also raising concerns that the government would take more aggressive steps to control the cost of debt financing. 

The effect was felt in assets often associated with the debasement trade, namely assets considered capable of preserving value when confidence in fiat currencies declines. Both Bitcoin and gold attracted capital inflows.

However, Bitcoin moved much more aggressively.

Historical data shows BTC rose 7.27% on August 21 to US$78,333.9 after gaining 5.34% the previous day. On August 19, BTC also recorded a 7.12% increase. 

Therefore, the answer to how much Bitcoin has risen depends on the measurement period. Since early July, the increase has been around 30%, while the weekly gain through August 21 was approximately 23%.

Read Also: Bitcoin Price Prediction August 2026: How High Could BTC's Sharp Rally Go?

Bitcoin vs Gold: Is BTC Starting to Act Like Digital Gold?

The Bitcoin vs gold comparison is becoming increasingly interesting because both have strengthened as the dollar weakened and concerns over US fiscal stability increased.

Gold rose more than 5% in one week and reached around US$4,600 per troy ounce. At the same time, Bitcoin rose around 23%. 

In terms of momentum, BTC clearly outperformed gold.

However, this advantage comes with different risks. Gold has a long history as a hedge asset and generally has lower volatility. 

Bitcoin has a maximum supply of 21 million coins and can be traded globally around the clock, but its price movements are far more extreme.

Correlation data also provides important insight. Bitcoin's 20-day correlation with the S&P 500 fell from around 0.43 to near zero, while its correlation with gold rose above 0.5. 

This shows that, for now, Bitcoin vs gold is no longer merely a narrative. Market behavior is indeed beginning to resemble the relationship between BTC and hedge assets.

However, a change in correlation over one or several weeks is not enough to conclude that Bitcoin has completely transformed into digital gold. Over a one-year horizon, BTC still behaves more like a risk asset or stock than gold.

Bitcoin is showing favorable movement. Continue monitoring developments in BTC and other crypto assets by registering with Bittime and following the latest market updates.

Bitcoin vs Stocks: Why Can BTC Outperform the Market?

The difference between Bitcoin vs stocks was clear in the week ending August 21.

Bitcoin surged around 23%, while the S&P 500 fell around 1.4%. Gold rose around 5.2%, while the US dollar weakened around 0.8%. 

This situation is important because Bitcoin was previously often traded as a high beta asset relative to technology stocks. When investors reduced exposure to risky stocks, BTC often came under pressure as well.

This time, the mechanism was different. Investors instead shifted their attention toward assets with limited supply characteristics as concerns over US debt and the value of the dollar increased.

In addition to macro factors, positive sentiment from the crypto industry also provided support. Optimism surrounding US digital asset regulation, including discussions of the CLARITY Act, as well as capital inflows into Bitcoin ETFs, provided additional catalysts. 

Even so, this does not mean that Bitcoin vs stocks will always produce the same pattern. Stocks provide exposure to companies with revenue, profits, cash flow, and productive assets. 

Bitcoin does not have cash flows like a company, so its valuation depends heavily on market demand, scarcity, liquidity, and adoption.

Read Also: Bitcoin Rises, Coinbase and Strategy Shares Soar After US Treasury Move

Is the Bitcoin Rally Supported by Leverage or New Capital?

One of the most positive aspects of the Bitcoin price increase this time is its funding structure.

According to CryptoQuant analysis, the amount of capital in the Bitcoin market increased from around US$20.6 billion to US$24.9 billion since early July. However, the proportion of funds originating from borrowing declined after reaching a peak on August 14.

This means that the price increase was not entirely driven by increased leverage.

This is important because leverage-based rallies carry the risk of cascading liquidations. When prices decline slightly, leveraged positions may be forcibly closed, increasing selling pressure.

Conversely, greater dominance of spot purchases can make the rally structure relatively stronger. However, this is not a guarantee that BTC will continue rising.

One signal to watch is when prices begin moving sideways while leverage rises again. This combination could indicate that traders are beginning to chase prices using borrowed funds.

Source: Cryptoquant/Woominkyu

Will Bitcoin Continue to Rise?

Historically, Bitcoin gains of more than 15% in one week have often been followed by positive momentum. Data shows that the median BTC return after such large weekly rallies was around 4.6% in one week, 8.1% in one month, and 21.6% in six months. 

However, these statistics are not a prediction.

Current macroeconomic conditions remain complex. Long-term Treasury yields remain high, US government debt has surpassed US$40 trillion, and the market is still waiting for several economic indicators and the direction of Federal Reserve policy. 

For BTC, the US$78,000 area has become an important psychological zone following the sharp rally. Data from August 24 showed Bitcoin remained around US$77,000–78,000, although it experienced consolidation after the previous surge

If spot capital inflows remain strong and Bitcoin can maintain high levels without a surge in leverage, the rally has a healthier foundation. Conversely, a sharp decline accompanied by rising leverage could quickly change the momentum.

Read Also: US Debt Crisis Looms, Ray Dalio Chooses Bitcoin and Gold

Bitcoin Leads in Momentum, but Has Not Replaced Gold and Stocks

So, does Bitcoin outperform gold and stocks?

For the latest period, the answer is yes in terms of price performance. BTC rose around 23% in one week, compared with gold's roughly 5% gain and the S&P 500's approximately 1.4% decline. 

However, short-term performance does not automatically mean Bitcoin is a better asset than gold or stocks.

For now, BTC is rising with a relatively healthier structure because the increase in market funds has not been accompanied by increased leverage. This is one of the reasons why the current Bitcoin rally deserves attention—not only because its price is rising, but because of how the increase is occurring.

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FAQ

What caused Bitcoin to rise sharply in August 2026?

Bitcoin rose due to a combination of US Treasury policy related to long-term bond buybacks, a weaker dollar, increased interest in hedge assets, more positive crypto regulatory sentiment, and capital inflows into Bitcoin.

How much did Bitcoin rise in the latest rally?

Bitcoin rose around 23% in one week through August 21, 2026, and around 30% since early July, when BTC was trading at approximately US$60,000. 

Has Bitcoin already outperformed gold?

In the latest rally, Bitcoin outperformed gold in percentage terms. BTC rose around 23% in one week, while gold rose more than 5%. However, Bitcoin has significantly higher volatility.

Is Bitcoin now more like gold or stocks?

In the short term, Bitcoin is showing characteristics more similar to gold because its correlation with gold has increased while its 20-day correlation with the S&P 500 has fallen close to zero. However, over a longer period, BTC still tends to be more correlated with risk assets. 

Will Bitcoin continue to rise?

It cannot be determined yet. A rally structure supported more heavily by spot purchases is a positive signal, but investors still need to monitor leverage, ETF flows, the US dollar, Treasury yields, and BTC's ability to maintain high price levels.