Bitcoin Surges as Gold Hits Longest Losing Streak in a Century

• Gold has recorded its longest losing streak in over 100 years, marking 10 consecutive days of decline.
• Bitcoin continues to hold above $70,000, causing the bitcoin-to-gold ratio to climb to nearly 16 ounces.
• Significant divergence in ETF flows shows billions exiting gold funds while bitcoin ETFs attracted $2.5 billion in new capital this month.

Gold's Historic Losing Streak and Support Levels

According to Bloomberg analyst Katie Greifeld, gold has experienced its most prolonged downward trend since February 1920. The precious metal saw prices fall for 10 straight days, at one point dropping as much as 27% from the record highs established in January. During this slide, gold hit a low of $4,090, finding critical support at its 200-day moving average, a technical indicator often used to determine long-term market trends.

While gold has recently seen a modest rebound of approximately 2%, it remains down by roughly 12% since the end of February, coinciding with the escalation of conflict in the Middle East. This recovery suggests the century-long record streak may be coming to an end, even as the asset struggles to regain its earlier momentum.

Bitcoin Performance and the Rising Gold Ratio

As gold faced selling pressure, bitcoin has maintained its position above the $70,000 threshold. This price action has pushed the bitcoin-to-gold ratio—a measure of how many ounces of gold are needed to buy one bitcoin—to just under 16 ounces. This represents a 30% increase from the lows of 12 ounces recorded just before the onset of the Middle East conflict.

Charlie Morris, Chief Investment Officer at ByteTree, highlights the historical growth of this ratio. He noted that since bitcoin first reached parity with one ounce of gold in March 2017, it has consistently set higher floors during market cycles:

• 2.7 oz in 2019
• 3.4 oz during the 2020 pandemic
• 9.1 oz following the FTX collapse
• 12.4 oz in February of this year

Morris suggests that with gold appearing exhausted, the ratio could realistically target a new all-time high of over 40 ounces in the future.

Shifting Capital and ETF Dynamics

Market analysts are observing a clear disconnect between the two assets. Bloomberg ETF analyst Eric Balchunas argues that gold and bitcoin are not inversely correlated but are instead largely uncorrelated. Recent data supports this, as major gold exchange-traded funds like the SPDR Gold Trust (GLD) and iShares Gold Trust (IAU) have witnessed billions of dollars in outflows over the last week.

In contrast, bitcoin ETFs have seen robust demand, recording $2.5 billion in inflows throughout this month alone. Despite bitcoin being down approximately 20% over a broader period, net outflows for the year stand at only $140 million. This suggests that while gold has traditionally led market cycles with initial rallies, bitcoin is increasingly capturing investor interest during consolidation phases.