The precious metals market is experiencing one of the most unusual and, in a sense, symbolic periods in its entire history. Gold, long considered the primary safe-haven asset during crises, is showing a prolonged decline that defies the usual logic of market behavior. According to Bloomberg analyst Kathy Greifeld, gold has been falling for ten consecutive trading days — the longest losing streak on record.
The scale of the decline is also striking. From the January 2026 peak, gold has lost up to 27%, and since the end of February, roughly 12%. As of March 25, the price holds around $4,565 per ounce, although at times it dropped nearly to $4,100, according to TradingView data. For an asset traditionally associated with stability and capital preservation, such moves are unusual and force investors to rethink their habitual behavior models.
Gold price from broker OANDA. Source: TradingView
Notably, this decline comes amid geopolitical tensions in the Middle East — precisely the periods when gold historically tends to rise. However, this time the market chose a different logic. Investors began actively reallocating capital toward alternative assets, and the main beneficiary of this process has been Bitcoin.
The leading cryptocurrency confidently stays above $70,000, strengthening its position and gradually taking on the role of a next-generation safe-haven asset. In this context, the Bitcoin-to-gold ratio has risen by about 30% since the conflict escalation at the end of February. If previously one BTC was equivalent to around 12 ounces of gold, it now approaches 16 ounces. This is not mere statistics — it signals a structural shift in investors’ perception of risks and hedging tools.
Bitcoin-to-gold ratio. Source: TradingView
An additional market driver was statements by Donald Trump regarding the situation with Iran. Reports of “productive negotiations,” followed by rhetoric about a de facto victory in the conflict, boosted risk appetite. In such conditions, gold loses appeal as a safe-haven asset, while Bitcoin, straddling risk and alternative investment, attracts capital inflows.
Interestingly, the current dynamics fit a previously observed pattern. Experts note that at the beginning of market cycles, gold often leads Bitcoin as the first refuge for capital, but then the cryptocurrency catches up and surpasses it. It seems the market is currently in this phase.
ByteTree Investment Director Charlie Morris recalls that even in March 2017, the mere fact that one Bitcoin was worth more than one ounce of gold caused a stir. Today, the situation looks almost symbolic: one BTC is now roughly equivalent to 16 ounces. In his view, amid weakening gold, this ratio could continue rising and potentially reach 40 ounces per Bitcoin in the future.
At the same time, analysts caution against oversimplifying the picture. Bloomberg expert Eric Balchunas emphasizes that Bitcoin and gold are not in direct inverse correlation. They can move independently, reacting to different factors. However, the current moment clearly shows a reallocation of investor interest.
One confirmation of this is capital flows into exchange-traded funds. Major gold ETFs, such as SPDR Gold Trust and iShares Gold Trust, recorded significant outflows last week. This sharply contrasts with previous months when retail demand for gold ETFs tripled, and total investments exceeded $70 billion.
Effectively, the market passed the phase of heightened demand for safe-haven assets, followed by profit-taking and the exit of speculative capital. This reversal became one of the factors pressuring gold prices. Against this backdrop, Bitcoin, which has gained about 15% since late February, began taking the lead. Its appeal is strengthened not only by price dynamics but also by changing perception. Increasingly, it is seen not merely as a speculative asset but as a tool for preserving value amid global economic uncertainty.
This view was previously expressed by BlackRock CEO Larry Fink, who called both gold and Bitcoin “fear assets.” According to him, rising global debt and macroeconomic risks push investors to seek alternative ways to protect capital. Moreover, large financial institutions increasingly view cryptocurrency as a legitimate part of long-term portfolios. JPMorgan analysts previously projected Bitcoin’s long-term potential to reach $266,000, highlighting its competitiveness relative to gold.
Daily BTC/USDT chart on Binance exchange. Source: TradingView
At the time of writing, Bitcoin trades around $71,661, according to TradingView, holding key levels and demonstrating resilience amid a volatile geopolitical backdrop.
Ultimately, the market is at a point where not just prices but the very perception of safe-haven assets is changing. Gold, which has symbolized stability for centuries, temporarily yields to a younger, more technologically oriented competitor. If the current trend continues, this may not be a short-term anomaly but the beginning of a long-term capital reallocation in the global financial system.
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