Are Investors Rotating Out of Gold Into Bitcoin?

Gold’s recent decline has extended into its worst losing streak in more than a century, last seen in February 1920. Prices have retreated over 25% from January highs.

Key takeaways

Quick scan — what you need to know:

• Gold’s recent decline has extended into its worst losing streak in more than a century, last seen in February 1920.
• Prices have retreated over 25% from January highs.
• It even dipped briefly to $4,090 before staging a partial recovery to about $4,455 midway through the week.
• Despite speculation that capital was rotating from gold into BTC, new data suggests weakness in both assets.

Background

What led here, in plain terms:

• Bitcoin Fails to Capture Gold’s Exit Crypto analyst Darkfost has flagged early signals that challenge the growing narrative of capital rotation from gold into Bitcoin.
• After a strong yearly run, gold has entered a correction phase, as it slipped below its 180-day moving average amid pressure from margin calls and forced liquidations.
• At the same time, Bitcoin has stabilized following recent volatility but continues to trade below its own 180-day moving average, currently near $89,700.
• According to the framework outlined in the analysis, a clear rotation signal depends on divergence between the two assets.

Why it matters

Why readers and decision-makers should care:

• Back in October 2025, the firm estimated that diverting 3% to 4% of gold’s market could potentially double BTC’s valuation, while a 2% shift alone may be enough to lift prices above $161,000.
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