Gold Wins the Risk-Off Trade as Bitcoin Drops Below $93K

Key Highlights

Gold nears $4,700 as investors flee risk, seeking safe-haven assets amid geopolitical and macro uncertainty.
Bitcoin drops below $93K, wiping out $864M in longs, as traders react to tariffs and rising macro risks.
Altcoins fall sharply while gold climbs, showing a clear shift from crypto to traditional safe-haven assets.

The “Gold vs. Bitcoin” battle is never going to end. Gold hit new highs on Monday, temporarily approaching $4,700 per ounce, driven by geopolitical tension and macro uncertainty. The move followed U.S. President Donald Trump’s announcement of 10% tariffs on eight European countries opposing the U.S. acquisition of Greenland.

Besides worries about global tensions, investors also expected U.S. interest rates to drop, which boosted gold prices. People moved their money out of risky assets and put it into safer options like gold. As a result, gold has been climbing steadily since mid-2025, rising about 41% as investors looked for a more stable place to park their funds.

While gold climbed, Bitcoin (BTC) felt the weight of the geopolitical “risk-off” sentiment. The leading digital asset faced selling pressure, trading around $92,786 with a 24-hour volume of $34.18 billion. It fell 2.34% in the past 24 hours as per data from CoinMarketCap.

“US markets closed today, so investors are expressing their macro positions through BTC,” noted analyst Nic. He added, “If we fall below $90,000 before market open tomorrow, ETF holders may also start dumping.”

No better way to start the week than a tariff induced crypto crash.
US markets closed today so investors are expressing their macro positions through BTC.
If we fall below $90k before market open tomorrow, ETF holders may also start dumping. pic.twitter.com/6I1758isOC
— Nic (@nicrypto) January 19, 2026

Crypto markets feel the pressure

The sudden pullback wasn’t just a price drop; it was a flushing of the system. Bitcoin’s recent drop wiped out about $864 million in traders over the past 24 hours, mostly hitting investors holding long positions. Traders also reduced their leverage, showing caution in the market.

While Bitcoin had a strong start to 2026, reaching nearly $98,000 last week due to spot ETF inflows, this “Greenland Pivot” shows that institutional appetite remains sensitive to macro instability. Altcoins followed suit, with major tokens seeing even sharper percentage drops than BTC, as investors favored the centuries-old stability of the yellow metal.

Traders are now waiting for Bitcoin to see if it holds above $90,000, the value that could decide how the retreat will play out. TradingView data indicates a brief BTC rebound at $93,110 following a decline to $92,648, registering a 0.35% rise. Bollinger Bands reveal tight and sudden consolidation patterns and breakouts, while the Moving Average Convergence Divergence (MACD) reveals bears despite the recent visible green candle.

Bollinger Bands measure price volatility with upper and lower bands, while MACD indicates trend momentum and potential reversals.

Gold vs Bitcoin: A clear divergence

The performance gap between the two “stores of value” is widening. Since October 2025, Gold has maintained a steady upward trajectory, up roughly 41%, while Bitcoin has struggled with a 10% decline over the same period.

Prominent gold advocate, Peter Schiff, highlighted this trend on X: “Gold is already trading at a new record high above $4,670, and silver is up over $93. Trump’s new tariffs and threats to invade Greenland are uniting the world against the U.S.,” Schiff added that global shifts are strengthening traditional safe-haven demand.

As Bitcoin teeters near the psychological $90,000 level, the coming days will determine if “Digital Gold” can regain its footing or if the capital rotation into physical bullion will continue to accelerate.