Gold Price Leads While Bitcoin Underperforms in Risk-Off Markets – Here’s Why

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Gold has once again become investors’ first choice during uncertain times. Rising inflation, slowing global growth, and ongoing geopolitical tensions have pushed money into traditional safe-haven assets.

In 2026, gold prices crossed $5,500 per ounce, marking an 18% gain this year and more than 60% growth since 2025. Central banks continue to buy gold aggressively, especially countries looking to reduce their dependence on the U.S. dollar. This steady demand has strengthened gold’s role as a trusted store of value when confidence in paper currencies weakens.

Bitcoin Price Lags as Investors Turn Cautious

Bitcoin has remained stable compared to risk assets, but it has not matched gold’s strong rally. BTC has slipped below $90,000, wiping out its gains for the year.

During recent global tensions, investors moved money quickly into physical gold. In fact, gold added value in a single day nearly equal to Bitcoin’s entire market cap, showing where capital flows during moments of fear.

Economist Explains Gold vs Bitcoin During Market Stress

Economist Dr. Bob Murphy, speaking on a podcast with Anthony Pompliano, explained why gold is currently leading Bitcoin.

According to Murphy, gold and Bitcoin are not rivals, but assets that react differently to risk. Both benefit when investors expect money printing or currency weakness. However, during extreme uncertainty, gold feels safer to many because of its thousands-year history and global acceptance.

Bitcoin, while innovative, still depends on technology, internet access, and newer infrastructure, which can make investors cautious in crises.

Murphy stressed that Bitcoin’s underperformance does not weaken its long-term outlook. Instead, it reflects how investors behave when fear rises. In stressful moments, people prefer what they know best, and gold fits that role.

Central Bank Gold Buying Signals Global Shift

Murphy also pointed to a changing global financial system. Many countries are preparing for a future where the U.S. dollar is no longer dominant.

Central banks, especially outside Western economies, are increasing their gold reserves. This trend shows growing concern about the current monetary system rather than a complete rejection of fiat currencies.

Federal Reserve Policy and Government Influence

The conversation also touched on the Federal Reserve. Murphy argued that the Fed cannot be fully independent because its decisions directly affect government debt and borrowing costs.

Interest rate policies, he said, are closely tied to fiscal needs, making political influence hard to avoid.

Despite gold’s recent strength, Murphy remains optimistic about Bitcoin. He described it as a younger and more volatile asset that is still evolving.

Over time, Bitcoin may grow alongside gold rather than replace it. Both assets, he believes, will continue to attract investors looking for protection outside traditional financial systems.