Why investors are pulling back from gold and still buying Bitcoin

Gold has entered a bear market, falling over 22% from its January peak as investors react to sustained high interest rates, a strong dollar, and increased cash demand. This decline is reflected in significant outflows from gold ETFs. Simultaneously, US spot Bitcoin ETFs continue to attract substantial inflows, with over $2.42 billion in net inflows over four weeks. This divergence highlights a shift in investor behavior, as Bitcoin, through the ETF structure, maintains institutional interest despite broader market volatility. While gold's long-term support from central bank demand remains, short-term macroeconomic conditions are currently outweighing this factor. Oil prices and future Federal Reserve policy are expected to play a key role in the next phase of this trend, potentially continuing the pressure on gold while Bitcoin's performance remains tied to liquidity and institutional appetite.

(Source：CryptoSlate)