Gold (CM:XAUUSD) is currently suffering through its longest losing streak since the era of the Model T Ford. As of Wednesday, March 25, 2026, the precious metal has dropped for 10 straight days, marking its worst run since February 1920. While the yellow metal struggles with a massive 27% fall from its January highs, Bitcoin (BTC-USD) is showing its strength by holding firm above $70,000.
Historic Price Drop Supports a New Bitcoin Ratio
The sudden crash has pushed gold down to $4,090, a level where it finally found some support at its 200-day moving average. Bloomberg analyst Katie Greifeld noted that this 10-day slide is a rare historic event that hasn’t been seen in over 100 years. Even with a small 2% bounce today, gold remains down about 12% since the Middle East conflict intensified in late February.
As gold falls, the “Bitcoin-to-gold ratio” has exploded. This ratio measures how many ounces of gold you can buy with one Bitcoin. Just before the latest war started, one Bitcoin was worth 12 ounces of gold. Today, that number has jumped 30% to nearly 16 ounces. Charlie Morris, the Chief Investment Officer at ByteTree, noted that Bitcoin has been building “higher lows” for years. He believes that “with gold appearing exhausted, we could reasonably expect a new all-time high above 40 ounces in the coming months or years.”
Bitcoin ETF Flows Support a Major Shift in Investor Style
The way people are investing is also changing. Bloomberg ETF expert Eric Balchunas pointed out a massive divide in where the money is going. Over the last week, investors pulled billions of dollars out of major gold funds like the SPDR Gold Trust ($GLD). In fact, roughly $3.8 billion left the top two gold ETFs recently.
Meanwhile, Bitcoin ETFs are seeing the opposite. These funds have taken in about $2.5 billion this month alone. Balchunas argues that the two assets are “uncorrelated,” meaning they don’t always move together. He explained that while both are stores of value, “one is older and the other is younger.” This younger version, Bitcoin, is currently showing much more fortitude even as the broader market feels the heat of the Iran-Israel war.
High Yields and War Tension Create Market Pressure
The real reason for gold’s struggle might be the macro environment. While war usually makes gold go up, high interest rates and a strong U.S. Dollar are working against it. Analysts from ING explained that the conflict has actually raised inflation risks, which makes investors think interest rates will stay higher for longer. This is bad for gold because it doesn’t pay any interest.
Furthermore, Jim Cramer noted on Wednesday that neither asset acted as a perfect “crisis hedge” this time. He argued that he mainly saw “margin calls and forced selling” rather than people buying for safety. However, with Bitcoin outperforming gold on a relative basis, the digital gold narrative is gaining more followers. As oil prices drop and ceasefire talks continue, investors are watching closely to see if gold can finally break its losing streak for good.
At the time of writing, the price of gold is sitting at $4,554.50.
