Bitcoin vs Gold dynamics have shifted as market data shows a shift between the two assets during the ongoing Middle East conflict. Since February 28, Bitcoin has gained roughly 7% to 10%, while gold has declined by 19%. Gold prices dropped from about $5,500 before the strikes to $4,493 at the time of writing. Meanwhile, Bitcoin has seen a declineof 3.31%, trading at $66,224 over the past day.
Bitcoin vs Gold Divergence Follows ETF Flows and Yield Spike
The Bitcoin vs Gold divergence is consistent with changes in liquidity and bond yields. Brent crude rose 40% to $108 per barrel during the conflict. At the same time, according to an X post, the U.S. 10-year yield reached 4.415%. Higher yields increased the opportunity cost of holding gold, which does not generate income.
As a result, institutions reduced exposure to gold. Gold-backed exchange-traded funds saw outflows of $7.9 billion, or 54.8 tonnes, according to data from the World Gold Council and JPMorgan. In contrast, Bitcoin absorbed over $1.1 billion in net ETF inflows within the first two weeks of the war. March 2 alone saw $458 million in inflows, according to Farside Investors.
Bitcoin’s continuous trading structure provided liquidity at all times. This was a factor that supported flows during periods when traditional markets were closed. Therefore, the divergence of Bitcoin vs Gold was not a change in investor preference alone, but rather a change in trading infrastructure.
Bitcoin vs Gold Trend Strengthened by Market Updates
The Bitcoin vs Gold trend is also in line with previous market observations reported by Coingape. According to the report, Bitcoin outperformed Gold by 23% during the conflict period. Bitcoin held above $70,000 after a five-day halt announced by U.S. President Donald Trump. At the same time, gold slipped below $4,300 as safe-haven demand weakened.
Since February 28, when U.S.-Israeli strikes targeted Iranian infrastructure, Bitcoin recorded ongoing gains. Bitcoin’s price increased from about $66,000 to around $72,700 at that period. This movement shows a gain of approximately 33% during the conflict period.
Helium Disruptions and Yuan Settlement Signal Market Structure Shifts
At the same time, infrastructure disruptions added pressure across markets, as Iranian strikes hit Qatar’s Ras Laffan facility on March 18, which produces about one-third of global helium. QatarEnergy declared force majeure, and repairs may take three to five years. Meanwhile, the U.S. said it has no plans to invade Iran, which briefly influenced market sentiment and coincided with a crypto market pullback, before conditions stabilized.
Helium remains a vital component of semiconductor production, and South Korea imports 64.7% of its helium from Qatar. Companies like Samsung and SK Hynix are reportedly sitting on about six months of inventory as spot helium prices have already doubled, adding to cost pressures.
Meanwhile, another trend involved changes in the settlement of world trade. On March 22, a Panama-flagged vessel called Newvoyager transited the Strait of Hormuz under Iranian control, and the vessel paid for passage in Chinese yuan, according to Lloyd’s List Intelligence.