Traders Pull Back From Bitcoin, Reroute Funds to Gold, AI‑Driven Tech Stocks
February 2026
Overview
Since the start of 2024, the performance gap between two of the most watched “hard‑money” assets has widened dramatically. Gold has rallied more than 150 percent, while Bitcoin has slipped roughly 30 percent over the same period. The divergence is prompting investors to reassess where they park capital, with a noticeable swing toward traditional safe‑haven metals and high‑growth technology equities, especially those linked to artificial intelligence (AI) and software‑as‑a‑service (SaaS) businesses.
Money Supply, Liquidity and Bitcoin’s “High‑Beta” Profile
Fidelity’s global‑macro director, Jurrien Timmer, highlighted that gold’s price action aligns closely with the expansion of the global M2 money supply—an expected pattern for a pure “hard‑money” store of value. Bitcoin, while also sensitive to long‑term trends in M2, behaves more like a high‑beta asset. Its short‑term price swings tend to amplify the prevailing market sentiment.
Historical data show that Bitcoin’s strongest up‑trends coincided with periods when expanding liquidity was coupled with a surge in software and SaaS stocks. Those equities are often used as a barometer for speculative appetite in the broader market. For example:
| Period | SaaS/Yr Growth | Bitcoin Price Movement |
|---|---|---|
| 2017‑2018 | +58 % | Sharp rally |
| 2020‑2021 | +93 % | Rapid appreciation |
| 2022 | –58 % | Deep drawdown despite high M2 |
When tech‑sector optimism wanes, Bitcoin’s price tends to underperform even if money supply remains abundant. Timmer notes that the current environment features plentiful liquidity but a bearish stance on speculative assets, which explains why gold is climbing while Bitcoin lags.
Gold’s Growing Footprint on Crypto Platforms
The shift is not limited to traditional markets. Crypto‑native exchanges have begun offering tokenized exposure to gold, and the demand is catching up quickly. Binance introduced 24‑hour and 7‑day gold futures on January 5, 2026. Within weeks, cumulative trading volume approached $35 billion, with a single day exceeding $4 billion in activity. Weekly averages now sit near $4.7 billion, according to analytics firm CryptoQuant.
The surge in gold‑linked futures appeared immediately after a two‑day correction that knocked more than 20 % off the spot gold price, underscoring traders’ appetite for a “digital version” of the metal during periods of heightened volatility.
Declining On‑Chain Bitcoin Liquidity
At the same time, Binance’s aggregate holdings of major cryptocurrencies (BTC, ETH, XRP, plus a suite of ERC‑20 and TRC‑20 stablecoins) have contracted to roughly $102 billion, the lowest level since April 2025. The portfolio value fell from around $140 billion in August 2025, reflecting a combination of lower asset prices and a wave of user withdrawals to self‑custody wallets.
For Bitcoin, the shrinkage of exchange balances signals a more cautious trader base and thinner near‑term order‑book depth. Reduced on‑exchange liquidity can exacerbate price swings, especially when speculative demand from the tech sector is muted.
AI and Tech Stocks Capture Investor Interest
While the article’s primary focus is on the Bitcoin‑gold rotation, the broader capital flow has also steered funds toward AI‑centric and high‑growth technology equities. The same SaaS dynamics that once amplified Bitcoin’s rally are now channeling capital into AI platforms, cloud infrastructure, and semiconductor firms that support generative‑AI workloads. These sectors continue to offer robust earnings forecasts, making them attractive alternatives for risk‑adjusted returns.
Key Takeaways
- Gold outperforms Bitcoin: Up +153 % YTD vs. Bitcoin’s ‑30 % in the same period, reflecting a risk‑off tilt.
- Money supply alone isn’t enough: Bitcoin’s price still depends heavily on speculative sentiment, especially in the tech sector.
- Crypto exchanges are adding gold products: Binance’s gold futures have generated $35 billion in volume, indicating strong demand for tokenized hard assets.
- On‑exchange Bitcoin liquidity is shrinking: Binance’s total crypto portfolio fell to $102 billion, suggesting traders are moving to self‑custody and potentially limiting short‑term price support for BTC.
- AI‑related equities are the new magnet: With speculative appetite in software and SaaS easing, investors are gravitating toward AI and cloud‑computing stocks that promise higher growth potential.
Outlook
If the current environment of ample liquidity but subdued speculation persists, gold is likely to retain its upward trajectory while Bitcoin may remain constrained by thin exchange liquidity and a lack of bullish tech‑sector catalysts. Meanwhile, AI and related technology stocks could continue to absorb capital seeking higher returns, further reinforcing the diversification away from crypto’s most volatile assets.
Investors should monitor changes in global M2 growth, tech‑sector earnings beats, and on‑chain exchange balances to gauge where the next wave of capital allocation may head.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers are encouraged to conduct their own research before making any financial decisions.
Source: https://cointelegraph.com/news/bitcoin-price-slump-versus-gold-s-gains-highlights-evolving-crypto-market?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
