After a modest rally sparked by recent soft inflation numbers, U.S. stocks are once again experiencing a notable decline. As we head into midday on the East Coast, the Nasdaq has fallen by 1.7%, while the S&P 500 is down 1.2%. Consequently, Bitcoin (BTC) is also feeling the strain, retreating from its midweek high of nearly $85,000 to around $81,000, reflecting a 1% decrease over the past 24 hours.
In stark contrast to this downward trend in equities and cryptocurrencies, gold continues to provide a reliable safe haven for investors during turbulent times. The yellow metal has risen by 1.5%, nearing a record high and coming within striking distance of the coveted $3,000 per ounce milestone.
Notably, since the Nasdaq reached its peak for the year roughly three weeks ago, it has experienced a near 15% decline. During the same period, gold has managed to gain approximately 1%, while Bitcoin has suffered a steep drop of nearly 20%.
This current performance of assets may remind investors of the late summer and early fall of 2024, when cryptocurrencies and stocks were largely stagnant while gold prices soared to new heights. Between March and October of that year, Bitcoin fluctuated between $50,000 and $70,000, whereas gold saw impressive growth of almost 40%, climbing to $2,800. Following the election victory of Donald Trump, Bitcoin surged past $100,000, while gold’s ascent was somewhat stunted as capital shifted from safe-haven assets to riskier investments.
Highlighting the dynamics of capital flows, gold exchange-traded funds (ETFs) experienced their largest inflows over a 30-day average since early 2022, adding 3 million ounces to their holdings, as reported by Bold.report. In stark contrast, U.S.-listed spot Bitcoin ETFs have seen a staggering $5 billion in outflows since February, marking the worst streak in their one-year history, according to data from SoSoValue.
