Bitcoin Loses Ground to Gold After Three-Month Rally Ends

Bitcoin has lost momentum against Gold after a three month uptrend weakened, signaling a possible shift in investor preference toward traditional safe haven assets.

The Bitcoin to gold ratio, which compares the dollar value of one Bitcoin to an ounce of gold, recently broke below a key trendline that had supported BTC’s gains since early March. During that period, the ratio climbed from around 12 to nearly 18, reflecting stronger demand for Bitcoin over gold.

However, recent price action suggests that trend may be changing as investors increasingly return to precious metals.

ETF Flows Highlight Growing Demand for Gold

Market data shows investor sentiment moving away from Bitcoin exchange traded funds. Over the past two weeks, more than $2 billion has reportedly flowed out of Bitcoin ETFs as concerns over higher U.S. interest rates and rising Treasury yields pressured risk assets.

At the same time, gold and precious metals ETFs attracted around $2.34 billion in inflows during the week ending May 20, extending a second straight week of strong demand.

Bitcoin vs Gold Outlook Remains Uncertain

Analysts say the trendline breakdown may point to weaker short term momentum for Bitcoin as a store of value asset. While technical signals can quickly reverse, current market behavior suggests gold may outperform BTC in the near future.

Bitcoin traded near $75,700, while gold prices remained stable around $4,500.