What to know:
- Bitcoin’s three-month uptrend versus gold has broken down.
- ETF flows point to a renewed bias for hard assets, with over $2 billion exiting BTC funds while gold and precious metal ETFs attract fresh inflows.
- The shift signals weakening momentum for bitcoin as a “store of value,” with gold poised to outperform in the near term.
After a three-month rise in value compared to gold, Bitcoin’s upward trend appears to be over. This change seems to be happening because more money is now flowing into gold and other precious metals, particularly through ETFs.
You can see this by looking at how the price of Bitcoin compares to the price of gold. This comparison shows which one investors currently favor as a reliable store of value.
Starting in early March, Bitcoin has significantly outperformed other assets, increasing the ratio from around 12 to 18.
But not anymore.
Growth has recently stopped increasing and has now clearly started to decline, ending a three-month period of gains.
The ratio between Bitcoin and gold has fallen below a key trendline, suggesting the recent gains Bitcoin made against gold are over. This is a significant signal in technical analysis, indicating that momentum is now shifting back in favor of gold.
Why this matters
This signal isn’t simply a technical indicator; it suggests where larger investors are likely to move their money next.
When the war in Ukraine started in late February and oil prices surged past $100 a barrel, investors began seeking safe investments. Initially, many turned to bitcoin, believing it could hold its value – this was reflected in the increasing ratio between bitcoin and gold prices.
However, that same pattern now suggests the recent upward trend is over, and investors are starting to move their money into gold again.
Technical indicators, like when a trendline is broken, aren’t always reliable, but currently, gold appears poised to perform better than Bitcoin in the short term.
Market flows support that interpretation.
Precious metal ETFs in demand
As an analyst, I’ve been watching a recent shift in the market – investors are pulling money out of Bitcoin ETFs. Over the past two weeks, these funds have seen outflows exceeding $2 billion. This seems to be connected to rising Treasury yields and expectations that the Federal Reserve will keep interest rates high for an extended period. Essentially, investors are reacting to a changing economic landscape and reallocating their funds accordingly.
Investors continue to favor gold and precious metal funds. According to data from LSEG Lipper reported by Reuters, these funds saw $2.34 billion in new investment during the week ending May 20th, marking the second week in a row of positive inflows.
Currently, Bitcoin is trading around $75,600, a slight decrease of 0.3% since midnight UTC. Gold prices are relatively stable, holding steady around $2,330.
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2026-05-27 08:52