Author of the news: Crypto Emergency
Gold is demonstrating the longest series of declines in history — the price of the metal has been decreasing for ten consecutive days. Against this backdrop, Bitcoin is strengthening its position and effectively taking on the status of a key defensive asset, analysts note.
According to Bloomberg, gold has lost up to 27% from the January peak of 2026 and about 12% since the end of February. As of March 25, the price is around $4565 per ounce, although it previously dropped nearly to $4100.
At the same time, Bitcoin is holding above $70,000, and its ratio to gold has increased by almost 30% since the escalation of the conflict in the Middle East began. Currently, 1 BTC is equivalent to approximately 16 ounces of gold compared to 12 ounces a month ago.
What has driven the growth of Bitcoin
The market reacted sharply to U.S. President Donald Trump's statements about delaying strikes on Iran and 'productive negotiations'. Later, the growth intensified after his statement about victory in the conflict.
Experts note that Bitcoin traditionally lags behind gold at the beginning of a cycle, but then catches up and surpasses it. ByteTree's investment director, Charlie Morris, reminded that in 2017, 1 BTC first exceeded the value of one ounce of gold, and now it is equal to 16 ounces. He allows for the possibility that in the future the figure may exceed 40 ounces.
Why gold is losing ground
Bloomberg analyst Eric Balchunas emphasizes that there is no direct inverse correlation between the assets — they move independently. However, gold ETFs, including SPDR Gold Trust and iShares Gold Trust, are recording significant capital outflows.
Earlier, BlackRock CEO Larry Fink called gold and Bitcoin 'fear assets', noting the growing interest of investors in alternative instruments against the backdrop of global debt risks.
Although demand for gold ETFs among retail investors has tripled over six months and exceeded $70 billion, further reduction of positions and the exit of speculators has led to a reversal of the trend.
Long-term prospects
JPMorgan analysts previously stated that in the long run, Bitcoin may appear more attractive than gold, estimating its growth potential to $266,000.
At the time of preparing the material, Bitcoin is trading at $71,661, according to TradingView.