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Bitcoin slips while gold reasserts safe-haven appeal
Bitcoin is struggling to hold recent gains as global investors pivot toward gold amid renewed trade-related uncertainty. After a sharp run earlier this year, BTC price has entered a technical correction, while gold set fresh records and drew strong institutional and central-bank demand.
Market snapshot and performance gap
Bitcoin continues to trade around the $110,000 area, roughly 12% below its year-to-date high and only slightly above the recent weekly low. By contrast, gold surged to an all-time nominal high near $4,200, delivering roughly 60% returns this year compared with Bitcoin's sub-20% climb. That widening performance gap is influencing investor flows and sentiment across crypto and traditional markets.
Fund flows and asset management totals
Asset managers reflect this divergence. The iShares Bitcoin Trust (IBIT) holds about $91 billion in assets under management, while the SPDR Gold Trust (GLD) has accumulated over $138 billion. This difference underscores how many institutional investors currently prefer the security and liquidity of gold when macro risks escalate.
What drove the recent sell-off in Bitcoin?
The crypto market reacted strongly to trade-policy headlines when former President Donald Trump proposed steep tariffs on Chinese goods. Bitcoin plunged toward $106,000 during that episode, while gold's rally accelerated as investors rushed to traditional safe havens. The move highlighted how macro shocks can still trigger rapid reallocation between crypto and precious metals.
Gold's tailwinds: central banks and diversified demand
Gold's rally has been supported by a mix of buyers: central banks, institutions, and retail investors. Notably, central-bank gold reserves recently surpassed the U.S. dollar for the first time since 1996, signaling a strategic shift in reserve composition that bolsters gold's store-of-value narrative.
Bitcoin's long-term case and ETF momentum
Despite the short-term drawdown, Bitcoin retains structural strengths. Spot Bitcoin ETFs launched earlier have continued to attract capital: 2025 inflows reached about $27 billion, lifting cumulative ETF flows to more than $62.5 billion. Over a five-year horizon, Bitcoin has outperformed gold dramatically, posting roughly 861% gains versus gold's approximate 105% increase, supporting Bitcoin's role as a high-growth digital store of value.
Technical outlook: more downside risk for BTC?
BTC price technicals show recent weakness. The daily chart reveals a double-top formation with a neckline around $106,978. Bitcoin has slipped beneath the 50-day moving average, and the measured move from the double-top suggests a downside target near $92,115 if selling pressure continues.
BTC price chart
Outlook for investors
For traders, the technical setup implies elevated downside risk in the near term. For longer-term investors, Bitcoin's adoption trajectory, ETF inflows, and the potential for future central-bank interest keep it on many institutions' radars. Meanwhile, gold's recent surge underlines its enduring role as a crisis hedge. Market participants should weigh liquidity, volatility, and macro exposure when positioning across Bitcoin, gold, and other safe-haven assets.
Source: crypto
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