Gold prices fell 21%, reaching a 106-year record, while Bitcoin remained stable at $71,000.

Gold, XEM a long-standing store of value, has just experienced chain worst price drop in over a century. The precious metal fell from $5,193 to a low of $4,098, a drop of nearly 21%, before recovering slightly to $4,559 per ounce.

Meanwhile, Bitcoin (BTC) has remained stable above the $70,000 mark during the same period, increasingly gaining dominance over gold and gradually becoming the preferred "safe haven" option for a new generation of investors.

Gold has a history, but not in the most positive way.

Katie Greifeld, a Bloomberg ETF expert, confirmed that gold's 10-day losing chain is the longest since February 1920, setting a 106-year record. This plunge is not just a technical issue, but also reflects a new perspective on gold's Vai in the current macroeconomic environment.

The nearly 21% drop from peak to Dip has left both large institutions and retail investors in a state of unease. Gold ETFs such as the SPDR Gold Trust and iShares Gold Trust have seen billions of dollars in Capital during this price chain . Conversely, Bitcoin ETFs have attracted approximately $2.5 billion in the past month, while YTD they have only recorded net Capital of $140 million.

For long-term gold holders, a 21% drop from its peak for an asset Capital XEM a "safe haven" has truly shaken confidence. This decline occurred in just 10 trading days, indicating not a gradual correction but a sharp and unexpected one.

Gold vs. Bitcoin

At the beginning of 2026, gold experienced a fairly positive upward trend. Prices continuously increased in January and February as geopolitical tensions in the Middle East escalated. Bitcoin also quietly recovered during this time , holding its support level and heading towards the $70,000 mark, although gold was the one that truly garnered media attention.

The turning point came when these geopolitical factors were no longer sufficient to support gold prices. The Federal Reserve (Fed), at its March 18th meeting, maintained interest rates at 3.5%–3.75%, and only signaled one rate cut in 2026, effectively depriving gold of its main upward momentum in the current monetary climate.

Brent crude oil prices rising above $108 per barrel further fueled concerns about cost-push inflation, strengthening the US dollar and putting pressure on gold – a non-interest-bearing asset. Bitcoin, however, was not heavily affected by these interest rate factors and remained stable.

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As a result, there is a clear difference between the two assets. Gold and Bitcoin now have a negative correlation coefficient of -0.31, meaning the two assets are moving in opposite directions. This data suggests that general macroeconomic factors no longer simultaneously influence the prices of gold and Bitcoin.

Bitcoin is demonstrating better stability against the pressures faced by gold. This suggests that Bitcoin's price is increasingly being determined by distinct drivers such as ETF inflows, institutional accumulation, and its status as a store of value, rather than being driven by interest rate factors like gold.

Gold prices begin to recover.

Gold prices were at $4,559 per ounce on March 25, 2026, after recovering from a Dip of $4,098 reached during a 10-day losing chain . This low represents a 21% loss from the previous peak of $5,193. The bounce from the 200-day moving Medium around $4,100 has become a technical support point, leaving gold currently down only about 15% of its previous peak – indicating a recovery, but not necessarily a reversal of the downtrend.

Renowned commentator Peter Schiff argues that the current situation bears many similarities to the 2008 global financial crisis, with both involving energy price shocks, the Fed maintaining high interest rates, and a wave of asset sell-offs.

However, Peter Schiff, who has long been a strong believer in the potential of gold, XEM this price drop as an opportunity to buy rather than fearing a long-term collapse.

JP Morgan and Deutsche Bank have both maintained their gold price forecasts for the end of 2026 at $6,300 and $6,000 per ounce, respectively – neither bank has adjusted its forecast despite the recent sharp drop in gold prices.

Whether gold can return to these forecast levels depends heavily on the escalating tensions between the US and Iran. President Trump ordered a halt to airstrikes on March 24th due to progress in dialogue, but the situation remains highly uncertain. Veteran trader Peter Brandt maintains his view that gold prices will reach a new all-time high in 2027.

If the ceasefire is maintained and inflation expectations fall enough to prompt the Federal Reserve to cut interest rates later this year, the long-term upward trend in gold prices, Capital bolstered by three consecutive years of central bank buying, could return much sooner than Brandt's 2027 prediction.