Gold is currently in its longest losing streak in over a century, its worst streak since February 1920, lasting 10 consecutive days, according to Bloomberg analyst Katie Greifeld.
The yellow metal fell 27% from its all-time high in January, falling to a low of $4,090, where it found support at its 200-day moving average, a widely watched technical level that often signals long-term trend strength.
However, it has rebounded around 2% in the past 24 hours, likely signaling the end of the streak. Since the Middle East conflict escalated in late February, gold remains down about 12%.
Meanwhile, bitcoin, often referred to as digital gold, is holding above $70,000, keeping the bitcoin-to-gold ratio just below 16 ounces. The ratio bottomed at around 12 ounces just before the Middle East conflict, meaning it was up around 30% from those lows as bitcoin outperformed.
Charlie Morris, Chief Investment Officer at ByteTree, said: “I remember the excitement when 1 BTC first surpassed an ounce of gold in March 2017. Since then, it has consistently hit higher lows, hitting 2.7 ounces in 2019, 3.4 ounces during the 2020 pandemic crash, 9.1 ounces after the FTX collapse, and 12.4 ounces in February of this year Today, one BTC is worth 16 ounces of gold With gold appearing to be exhausted, we can reasonably expect a new all-time high above 40 ounces in the coming months or years.
Historically, bitcoin has tended to lag gold in market cycles. Gold typically leads with an initial rally and then consolidates, allowing Bitcoin to catch up and outperform.
Bloomberg ETF analyst Eric Balchunas says bitcoin and gold are not inversely correlated, but rather largely decorrelated.
He points out that gold exchange-traded funds (ETFs) such as SPDR Gold Trust (GLD) and iShares Gold Trust (IAU) have seen outflows of billions of dollars over the past week.
In contrast, Bitcoin ETFs have seen about $2.5 billion in inflows this month, with only about $140 million in net outflows year-to-date, despite bitcoin being down about 20% over that period.
