Bitcoin BTC$121,751.88 and gold (XAU) have diverged over the past 24 hours, with BTC likely feeling pressure from a strengthening dollar index.

The leading cryptocurrency by market value has dropped 2.4% to $121,340, after failing to break through key resistance above $126,000 early this week, according to CoinDesk data. The Coindesk 20 Index has declined over 4% to 4,186 points.

The decline comes as the dollar index, which tracks the greenback’s exchange rate against a basket of fiat currencies, rose to 98.90, the highest level since Aug. 5.

Strength in the DXY typically weighs on USD-denominated assets, such as BTC and gold. BTC’s price chart suggests scope for a deeper decline to $118,000.

BTC hit record high over $126,000 early this week, as U.S.-listed spot ETFs pulled in over $3 billion in the week ended Friday.

While BTC’s rally has stalled, gold is showing no signs of slowing down, as its per-ounce price has surged past $4,000 for the first time in its history.

According to ING, the recent rally is catalyzed by a surge in inflows into gold-linked exchange-traded funds (ETFs).

“Investors are adding gold ETFs at a rapid pace. Last week, gold-backed exchange-traded funds expanded again, taking the total gold ETF holdings to the highest level since September 2022. There is still room for further additions, given the current total remains shy of the peak hit in 2020. More inflows could push gold even higher,” ING’s analysts said.

Prices have doubled in two years, spurred by central banks buying the yellow metal to diversify away from the U.S. dollar. President Donald Trump’s aggressive trade policy and conflicts in the Middle East and Ukraine have added to the bullish momentum.

Gold-backed tokens such as PAXG (PAXG) XAUT$4,027.23 have also risen above $4,000. The combined market value of all gold tokens has risen above $3 billion.