Bitcoin (BTC) Gets Outshited By Gold

As Bitcoin (BTC) struggles amid the latest crypto market pullback – failing to decisively break past the $84,000 resistance – gold (XAU)

As Bitcoin (BTC) continues to struggle amid the latest crypto market pullback, failing to decisively break past the $84,000 resistance, gold (XAU) has continued its impressive rally, soaring to a record high of $3,000 per ounce on March 14.

According to the latest data from the World Gold Council, US-based spot gold exchange-traded funds (ETFs) have attracted inflows exceeding $6 billion year-to-date (YTD). Globally, spot gold ETFs saw more than $23 billion in inflows.

This new record high from gold comes in stark contrast to Bitcoin's recent price action. BTC is down over 10% YTD, falling from approximately $94,000 on January 1 to around $84,000 at the time of writing.

The majority of Bitcoin's decline occurred during the past month as the cryptocurrency struggled to maintain gains above the $90,000 level.

Market analyst Northstar shared the following chart on X yesterday, highlighting the BTC-to-gold ratio over the past 12 years. According to the chart, BTC is beginning to break below a critical support line that has held strong for more than a decade.

If Bitcoin sustains price action below this support line for several weeks or months, it could signal the end of the current crypto bull run. BTC's underperformance against gold is also evident in the contrasting capital flows into BTC and gold ETFs.

According to the World Gold Council, US-based spot gold ETFs have attracted inflows exceeding $6 billion YTD. Globally, spot gold ETFs have seen more than $23 billion in capital inflows.

In comparison, data from SoSoValue indicates that US-based spot BTC ETFs experienced nearly $1.5 billion in net outflows YTD. This sharp contrast in capital movement reflects a shift in investor strategy from risk-on to risk-off assets.

Several factors may explain investors' growing aversion to risk-on assets. Notably, US President Donald Trump recently announced new trade tariffs, which could ultimately harm the U.S. economy and potentially spark a recession.

Furthermore, the U.S. Federal Reserve (Fed) has maintained a hawkish monetary policy, keeping interest rates elevated and reducing the balance sheet, putting pressure on stock prices and prompting a recent stock market rout.

This shift in risk appetite is also evident in the capital flows into U.S.-listed gold and Bitcoin ETFs. While gold ETFs experienced massive inflows, BTC ETFs saw significant outflows.

As the macroeconomic landscape continues to evolve, investors will be closely watching to see if the tide begins to turn in BTC's favor.