Bitcoin’s relative strength against gold has faded, with a key three-month uptrend now breaking as investor flows increasingly favor precious metals.
The shift is visible in the bitcoin-to-gold ratio — a metric comparing BTC’s price per coin to gold’s price per ounce — often used to gauge which asset investors prefer as a store of value. From early March, bitcoin had been in control, driving the ratio higher from around 12 to 18 during a sustained period of outperformance.
That momentum has now reversed. The ratio has stalled in recent sessions and decisively moved lower over the past 24 hours, breaking below its upward trendline and signaling the end of bitcoin’s mini-run against gold. In technical terms, such a breakdown typically points to a change in trend, suggesting momentum may now be shifting toward gold.
Beyond chart signals, the move likely reflects a broader change in investor positioning.
Earlier in the year, geopolitical tensions — including the escalation of the Iran conflict and a spike in oil prices above $100 per barrel — pushed investors toward perceived safe havens. Bitcoin initially benefited from this environment, as evidenced by its outperformance versus gold.
Now, that trend appears to be reversing. The breakdown in the ratio indicates capital may be rotating back into gold, even as bitcoin struggles to maintain its relative edge.
While technical breakdowns can sometimes prove temporary, current market signals suggest gold could outperform in the near term.
Fund flow data reinforces this view. U.S. spot bitcoin ETFs have seen more than $2 billion in outflows over the past two weeks, pressured by rising Treasury yields and expectations that interest rates will remain elevated for longer.
Meanwhile, gold and precious metals funds continue to attract inflows. These products pulled in $2.34 billion in the week ending May 20, marking a second consecutive week of gains, according to LSEG Lipper data cited by Reuters.
At the time of writing, bitcoin was trading near $75,600, down slightly on the day, while gold held steady around $4,500 — highlighting the shifting balance between the two assets as investor preferences evolve.
