Bitcoin (CRYPTO: BTC) is outperformed gold for the first time in months, surging 12% since Friday while gold fell 2% as investors poured nearly $700 million into U.S. Bitcoin ETFs in March.
The Gold Reversal
Until this week, the trend had been the opposite. Gold repeatedly hit record prices while Bitcoin tumbled more than 40% from its $126,000 peak in October.
The shift signals changing safe haven dynamics. Bitcoin appeared stable relative to other assets during the initial Iran selloff.
By Thursday, stocks were rebounding with Korea’s Kospi index jumping 11% and Japan’s Nikkei 225 rising 4.2%.
OKX SG CEO Gracie Lin explained the liquidity dynamics to Bloomberg: “With macro uncertainty and escalating conflict in the Middle East, markets are increasingly pricing in expectations of more accommodative financial conditions. When liquidity expectations shift, Bitcoin tends to respond disproportionately.”