After a modest rally yesterday spurred by soft inflation data, U.S. stocks are on a downward trajectory once again on Thursday, taking bitcoin (BTC) down with them.
As noon approaches on the East Coast, the Nasdaq has dropped by 1.7%, while the S&P 500 has seen a decline of 1.2%. Bitcoin, which nearly hit $85,000 on Wednesday, has now fallen back to $81,000, representing a 1% decrease over the past 24 hours.
In contrast, gold is maintaining its historical role as a safe haven in turbulent times. The yellow metal has risen by 1.5%, reaching a new all-time high and edging just $10 away from surpassing $3,000 per ounce for the first time.
Since the Nasdaq reached its peak for the year three weeks ago, it has seen almost a 15% decline. Over this same period, gold has managed a slight increase of about 1%, while bitcoin has plummeted nearly 20%.
This current performance trend may remind investors of late summer and early fall of 2024, when both crypto markets and stocks remained stagnant while gold achieved new heights. During the period from March to October, bitcoin consolidated between $50,000 and $70,000, while gold gained nearly 40% to reach $2,800. Eventually, bitcoin surged above $100,000, driven by a political victory, while gold’s upward momentum stalled as capital shifted from safe havens to riskier assets.
In terms of capital movement, gold exchange-traded funds have experienced their largest 30-day average inflows since early 2022, accumulating an impressive 3 million ounces of gold into the funds, according to available data.
Meanwhile, U.S.-listed spot bitcoin ETFs have faced a tougher reality, experiencing $5 billion in outflows since February, marking the worst negative streak in their one-year history.