Bitcoin Outflows Aren’t Saving Gold—Both Assets Face Intensifying Pressure

Digital gold and the real thing both take hits as investors flee to safety.

Pressure Mounts on Dual Assets

Bitcoin's outflows aren't providing any lifeline to gold—both traditional and digital stores of value are getting hammered simultaneously. The usual narrative of capital rotation between these assets completely breaks down when macro pressures hit both sides of the equation.

No Safe Haven Here

Gold bugs and crypto maximalists find common ground in misery as institutional money moves elsewhere. The correlation nobody wanted appears right on schedule—proving once again that when Wall Street panics, everything becomes a 'risk asset' except maybe Treasury bills.

Market Realities Bite

Traditional finance veterans might smugly note that 'this time it's different'—until they check their own portfolios. Sometimes the only thing gold and Bitcoin have in common is how quickly they can remind investors that safe havens are just stories we tell ourselves during bull markets.

Bitcoin outflows, hard assets are feeling the pain

Traditionally, when investors pull money out of Bitcoin, gold, the ultimate safe-haven asset, sees a surge in inflows, and vice versa. That’s because Bitcoin and Gold are seen as alternative stores of value and hedges against traditional financial market risks.

Investors often view them as uncorrelated assets because their prices and demand don’t typically MOVE in tandem with stocks or bonds. However, each asset appeals to different risk appetites and market conditions

Not so this month. Bitcoin ETFs recorded six straight days of outflows, draining nearly $2 billion in late August alone. Meanwhile, outflows from major gold ETFs, such as GLDM, also spiked, with $449 million exiting in just one week.

Despite record Bitcoin outflows and a broader crypto market pullback, Bitcoin ETFs rebounded toward the end of August, with a four-day inflow streak through the pullback. Gold ETFs also saw net inflows during the last days of August 2025, tracking a similar rebound as Bitcoin ETFs, and suggesting a possible change in investor sentiment as the month closes.

Macro uncertainty rules

The backdrop for this unusual behavior is a cocktail of economic crosswinds: uncertainty around Federal Reserve monetary policy, persistent inflation, and signs of a softer labor market. With the Fed’s next move unclear, Bitcoin and gold may not be especially attractive to investors seeking clarity or certainty.

Sticky inflation keeps the Fed hawkish, yet waning job growth undercuts confidence in further rate hikes.

This uncomfortable limbo leaves markets in a risk-off posture, where both speculative and defensive assets struggle to gain traction.

Waiting for the Fed’s next move

Bitcoin, often dubbed “digital gold,” inflows are stalling right now because investors aren’t feeling risk-on. Yet gold, which typically shines in periods of heightened fear, is also not benefiting from Bitcoin outflows.

Inflation concerns and shifting rate expectations are undermining gold’s historic safe-haven narrative. Instead of moving in opposition, both assets faced outflows as investors either shift to cash, seek higher-yielding alternatives, or wait for the Fed’s next move.

Until monetary policy direction becomes clearer, both Bitcoin and gold may continue to face headwinds. Macro investors value certainty, and, at the moment, ambiguity reigns.

This lethal combination makes it difficult for investors to predict whether rates will rise, a recession is coming, or inflation will surge again, leading to broader uncertainty across financial markets.

For now, Bitcoin outflows aren’t benefiting gold, and both assets are caught on the sidelines, waiting for the Fed to declare a new direction.