By Francisco Rodrigues (All times ET unless indicated otherwise)

As gold pushed through the $4,000 per ounce mark for the first time, bitcoin (BTC) lost 1.25% of its value and the wider crypto market, as measured by the coinDesk 20 (CD20) index, dropped 3%.

The drop came amid profit-taking after the crypto market rose more than 7.7% in less than a week and as whales’ paper gains swelled. The divergence also comes as the U.S. Dollar Index (DXY) rises to its highest level in two months.

Gold, long viewed as a safe haven, has rallied over 50% this year. Inflows into gold-linked exchange-traded funds (ETFs) have accelerated, with holdings now at their highest levels since late 2022, according to ING.

Investors are seeking cover from rising political risk, including a new leadership crisis

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