Bitcoin unexpectedly beats gold as a hawkish Fed and surging oil prices spark a risk-off mood.

Bitcoin declined around 2% but still outperformed precious metals as surging oil prices and hawkish signals from the Federal Reserve drove a broader risk-off mood in global markets.

While Bitcoin moved lower, gold and silver posted steeper losses, with gold down करीब 2% since midnight UTC—roughly twice Bitcoin’s decline. The relative strength pushed the BTC-to-gold ratio higher by about 1% over the past day, with one bitcoin now buying nearly 15 ounces of gold.

Gold’s underperformance partly reflects its strong run earlier this year. The metal had already rallied sharply—nearly doubling over the past 12 months—and was trading near record highs before geopolitical tensions escalated in the Middle East. That left it overbought, making further gains harder to sustain despite rising uncertainty.

Since the conflict began, Bitcoin and gold have diverged. Bitcoin, often referred to as “digital gold,” had previously fallen about 50% since October, leaving it oversold, but has since rebounded and emerged as one of the stronger performers outside energy markets. In contrast, gold has dropped roughly 17% from its January peak, edging closer to bear-market territory.

The macro backdrop has added further pressure. The Fed’s latest policy update struck a more hawkish tone, signaling fewer rate cuts than markets had been expecting and tightening financial conditions.

Risk assets reacted negatively. U.S. equities traded lower in premarket hours, with the Invesco QQQ Trust slipping about 0.5%. Crypto-related stocks also weakened, including MicroStrategy, Galaxy Digital, and Coinbase.

Meanwhile, escalating tensions involving Iran pushed Brent crude prices more than 6% higher over the past 24 hours to around $117 per barrel. The spread between Brent and West Texas Intermediate has widened to its largest level since 2013, signaling supply disruptions and logistical constraints—factors that could fuel inflation and further complicate the outlook for central banks.

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