Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesStocksEarnInstitutionAI & More
The Two Worlds of Bitcoin and Gold

The Two Worlds of Bitcoin and Gold

BFC汇谈BFC汇谈2026/02/13 00:03
Show original
By:BFC汇谈


If we were to select the "most neglected" asset since the beginning of the year, bitcoin would certainly be on the list. There was a time when bitcoin was lauded as "digital gold," but now it’s clear to everyone that gold is just gold, and once you add "digital" to the front, its essence changes.

Since the start of the year, bitcoin has dropped 22%. If calculated from the peak in Q4 2025, the cumulative decline has reached 45%. In comparison, gold has risen by 18% since the start of the year. The two major trending assets of recent years are showing increasingly different trends.

The Two Worlds of Bitcoin and Gold image 0


Why did bitcoin plunge? The main reasons are several cases of bitcoin being confiscated or seized, which shook the underlying logic of cryptocurrencies (decentralization, privacy) (see How Bitcoin's Crash Affects Gold Investment?). In recent months, bitcoin ETFs have continuously seen net capital outflows, with a cumulative net outflow of $2 billion since the beginning of the year.

Last year, the market was once worried about increasing complexity of gold capital and a decline in its safe-haven properties. Because a lot of risk-seeking funds from the US stock and bitcoin markets flowed into the gold market, there were concerns that a drop in US stocks or bitcoin could drag down gold and reduce its value as a safe haven. However, judging from the current bitcoin adjustment cycle, even though bitcoin ETF flows continue to see outflows, overall gold ETFs are still seeing net inflows—sometimes larger, sometimes smaller. Overall, gold has not been significantly affected by liquidity spillover.

The Two Worlds of Bitcoin and Gold image 1


Meanwhile, some major players in the cryptocurrency market continue to increase their gold holdings. For example, stablecoin giant Tether has gold reserves reaching 143 tons by the end of 2025, surpassing South Korea's national gold reserves. Moreover, it is reported that Tether is purchasing gold at a rate of 1-2 tons per week.

In my view, the reason why bitcoin has adjusted significantly while gold remains relatively firm and unaffected by liquidity spillover is largely due to the inflow of allocation-driven capital. Essentially, bitcoin and gold exist in two different worlds.

The Two Worlds of Bitcoin and Gold image 2


With the New Year approaching, many friends are concerned about whether to hold cash or positions during the holidays. I personally lean towards holding positions; gold is relatively stable, and it's best to add some options protection for silver.

Wishing you all the best and see you after the holidays!

To summarize today's sharing:

1. If we were to select the "most neglected" asset since the beginning of the year, bitcoin would surely be on the list. In recent months, bitcoin ETFs have continued to experience net capital outflows, with a cumulative net outflow of $2 billion since the start of the year, while gold ETFs overall are still seeing net inflows;

2. Last year, the market was concerned about increased complexity in gold capital and a decline in its safe-haven properties. However, based on the trend of this cycle, gold has not been affected by liquidity spillover due to bitcoin's plunge. On the contrary, some major players in the cryptocurrency market (such as Tether) are still increasing their gold holdings. Essentially, the gold market still sees allocation-driven capital inflows, and bitcoin and gold are in two separate worlds; 

3. Hold cash or positions during the holidays? I tend to hold positions. Gold is relatively stable, and it's best to add some options protection for silver. Wishing you all the best, and see you after the holidays!


0
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

Understand the market, then trade.
Bitget offers one-stop trading for cryptocurrencies, stocks, and gold.
Trade now!

You may also like

Volatility Divergence Between Individual Stocks and Index! Popular US Stock Trading: Go Long on Stock Options, Hedge with Index Options

With the divergence in the AI narrative, drastic fluctuations in oil prices, and U.S. Treasury yields soaring to a 20-year high, the degree of dispersion among S&P 500 constituents has risen to the 95th percentile in 30 years. As single-stock volatility continues to compress, entry costs have become relatively low, and the volatility gap between individual stocks and the index has widened again. This has opened a rare window for dispersed trading strategies such as "long single-stock options + short index options."

华尔街见闻•2026/09/28 01:21

US Treasury yield curve approaches inversion! Is the bond market questioning the outlook for the US economy?

The U.S. Treasury yield curve is rapidly approaching the inversion threshold—the spread between the 10-year and 2-year yields has narrowed to historic lows, and bank stocks have responded with a technical correction. This warning signal, regarded as a "hard rule" for recession, is tearing apart market consensus: some are betting the curve will soon invert, while others firmly believe economic resilience will mitigate the risk. Amid ongoing Federal Reserve rate hikes, the outcome of this bond market game may reshape the narrative logic of the entire asset market.

华尔街见闻•2026/09/28 00:31
US Treasury yield curve approaches inversion! Is the bond market questioning the outlook for the US economy?

From ICU to KTV! The Polarized "AI Narrative" Leaves Investors "Exhausted"

In just two weeks, the Nasdaq 100 experienced an extreme rollercoaster: first losing $600 billion in market value due to “AI threat” concerns, then rebounding to reclaim $3 trillion thanks to the viral Meta assistant. Analysts believe that market sentiment is swinging violently between fear and greed, detached from fundamentals. The turmoil has driven Nvidia’s valuation to a ten-year low, intensified the bull-bear divide, and the high volatility driven by narratives has become a long-term norm for investors. This week, Micron will release its financial report; regardless of the outcome, the sharp swings in market sentiment are unlikely to subside.

华尔街见闻•2026/09/28 00:21