Bitcoin has experienced a substantial decline of 5% since last Thursday, contrasting sharply with gold’s remarkable surge of nearly 5%, culminating in record highs. This divergence is attributed to increased institutional demand for gold as a safe haven amid ongoing macroeconomic uncertainties. Investors are reportedly reassessing their risk appetites, leading to a notable focus on gold over Bitcoin. Gold's recent strength is fueled by robust accumulation from sovereign and central banks, particularly in countries like China and Russia, which are using gold to hedge against U.S. dollar dominance. In contrast, Bitcoin remains in the early stages of institutional adoption, raising skepticism about its viability as 'digital gold.' The disparity is evident in ETF inflows, where gold has attracted $18.5 billion compared to Bitcoin’s nearly $10 billion. Historically, Bitcoin tends to outperform gold as risk tolerance rises, suggesting that if current trends continue, Bitcoin might play catch-up when market conditions stabilize.

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