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Gold Outpaces Bitcoin: Safe-Haven Assets Show Sharp Divergence
Gold Outpaces Bitcoin – The long-standing comparison between Bitcoin and gold as safe-haven assets is facing fresh scrutiny as the two move in opposite directions. While gold has soared to a new all-time high, Bitcoin has slipped, underscoring how investors are reassessing their strategies amid ongoing macroeconomic uncertainty.
Gold Hits Record High, Bitcoin Stumbles
Since last Thursday, Bitcoin (BTC) has dropped roughly 5%, failing to live up to its reputation as “digital gold.” In contrast, the precious metal has rallied by the same margin, climbing 5% and setting a record high of $3,791.
According to Farzam Ehsani, CEO and co-founder of crypto exchange VALR, gold’s strength has been fueled by sovereign and central bank demand. Nations like China and Russia have aggressively accumulated the asset, using it as a geopolitical buffer and a hedge against the U.S. dollar’s dominance. Bitcoin, Ehsani noted, is still in the “early stages of its institutional adoption,” leaving some investors skeptical of its safe-haven narrative.
ETF Flows Show the Divide
Data from the BOLD Report highlights the growing divergence. As of September, gold attracted $18.5 billion in ETF inflows, nearly double Bitcoin’s total of just under $10 billion. This discrepancy reflects investors’ preference for the traditional safe-haven during uncertain times.
Historically, Bitcoin’s performance has improved after the Federal Reserve begins cutting interest rates, often allowing it to catch up and even outperform gold in subsequent months.
Bitcoin May Yet Play Catch-Up
“Gold moves first, Bitcoin follows 1–2 months later,” explained Ryan McMillin, CIO at crypto fund manager Merkle Tree Capital. He added that once private, risk-tolerant capital enters the market, Bitcoin typically outpaces gold due to its smaller market size—about one-tenth of the precious metal’s capitalization.
For now, the spotlight is firmly on gold. But if history is any guide, Bitcoin could be preparing for its turn.
