Gate Metal: In turbulent times, why does the correlation between gold and cryptocurrencies suddenly "fail"?

In October 2025, the cryptocurrency market experienced a shocking shakeout, with Bitcoin’s single-day liquidation market cap reaching $19 billion, and its price plummeting approximately 15% from its all-time high. However, the traditional safe-haven king—gold—demonstrated remarkable resilience during the same period, with prices remaining steady. This classic divergence pattern ruthlessly shattered the single narrative of Bitcoin as “digital gold,” revealing the complex nature of asset correlations under extreme market conditions.

Fast forward to early February 2026, this divergence phenomenon reemerged clearly. Bitcoin’s price experienced significant volatility, dropping to around $60,000 at one point, then rebounding to the $70,000 level, highlighting its high volatility characteristics. In stark contrast, gold prices remained relatively stable within the range of approximately $4,500 to $5,000 per ounce. The differing trajectories during the same period are not just simple market fluctuations but serve as a profound opportunity for investors to reassess the core of assets and safe-haven logic.

Looking Back at History: Asset Performance Divergence During Crises

Reviewing periods of market crashes, the performance of gold and crypto assets often shows surprising divergence. The market event in October 2025 is just a microcosm; deeper historical data reveal even more complex asset relationships.

At the onset of the global pandemic in early 2020, traditional safe-haven assets like gold and silver surged rapidly due to risk aversion, while Bitcoin temporarily plunged over 30%. This divergence was not accidental but reflected fundamental differences among asset classes.

From a longer-term perspective, in 2017, Bitcoin’s price skyrocketed by 1359%, while gold only increased by 7%. Conversely, during the 2018 bear market, Bitcoin plummeted 63%, while gold declined just 5%. This asymmetric performance pattern also played out in 2022, with Bitcoin falling 57%, and gold slightly rising by 1%.

Even recent data continue this trend. As of early February 2026, Bitcoin’s price has fallen 22.05% over the past 30 days, while precious metals like gold have rebounded during the same period.

The Breakdown of Correlation: What’s Behind It?

Why did Bitcoin, dubbed “digital gold,” fail to exhibit safe-haven properties like gold during crises? The core reason lies in the fundamental changes in the driving logic of these two asset classes and the structure of market participants.

Bitcoin’s correlation with traditional tech stocks is continuously rising. According to analysis by Investing.com, in 2024, Bitcoin’s correlation with the Nasdaq 100 reached a high level of 0.87. This strong correlation makes Bitcoin more akin to high-growth tech stocks rather than a safe-haven asset.

Meanwhile, the gold market continues to be strongly supported by institutional funds. According to JPMorgan analysis, in 2025, central banks around the world purchased approximately 863 tons of gold, far exceeding market expectations. This structural demand provides solid support for gold, whereas Bitcoin lacks similar institutional backing.

Differences in asset attributes are also crucial. Gold, as a physical asset, does not rely on any country’s credit backing and has a 5,000-year history of consensus. Bitcoin, built on electricity, networks, and computational power, is more susceptible to technological risks and regulatory changes in its store of value function.

Gate Metals: Building Hedging Strategies During Crises

Faced with the reality of decoupling between gold and crypto assets, savvy investors are seeking more reliable hedging tools. Gate Metals contract products offer investors a convenient entry into the traditional precious metals market and have become an essential part of macro hedging strategies.

The metals contracts on the Gate platform cover a full spectrum—from traditional safe-haven assets to industrial metals. Gold, silver, and other precious metals contracts, along with copper, aluminum, and other industrial metals, form a diversified trading universe. This variety allows investors to choose the most suitable hedging tools based on specific market judgments.

A key feature of Gate Metals contracts is their synergy with US stock indices. The platform’s US stock index products are efficiently linked with metals contracts, enabling traders to quickly implement complex cross-asset hedging strategies. Research indicates that, in bear markets, combinations like the German stock market and Brent crude oil could be among the most cost-effective hedging strategies.

For different market environments, Gate Metals contracts offer flexible hedging options. Scientific analysis suggests that investors should hold more gold than other commodities to balance their equity portfolios, regardless of market conditions. This allocation recommendation stems from gold’s unique market positioning—as both a commodity and a quasi-currency asset.

Current Market Data and Strategic Insights

As of February 10, 2026, the precious metals market shows a steady to slightly strong trend, contrasting sharply with the cryptocurrency market. This divergence provides the latest case study for asset allocation understanding.

According to the latest data, silver performed the best, trading at $81.87 per ounce, up 2.48%; gold was at $5,033.79 per ounce, up 0.44%. Meanwhile, industrial metals like copper and nickel increased by 1.01% and 0.39%, respectively, demonstrating resilience driven by industrial demand.

In comparison, data from Gate’s market quotes show that as of February 10, 2026, Bitcoin’s price is $70,108, down 0.43% in 24 hours, with a 7-day decline of 9.10%. Despite widespread market predictions of long-term upside potential—such as reaching $149,511 by 2031—short-term volatility remains high.

In such a market environment, building a diversified asset portfolio is especially important. Gate’s metal contract products allow investors to adjust allocations based on different market conditions, such as increasing gold holdings amid inflation expectations or focusing on industrial metals during global manufacturing recovery.

Professional hedging strategies must consider the dynamic correlation between assets. Research shows that optimal hedging portfolios vary significantly across different market environments. During extreme events, spillover effects between commodities and equities intensify, making futures-based hedging particularly effective.

Returning to the market on February 10, 2026, silver has rebounded to $81.87 per ounce, and gold remains above $5,000. Loyal Bitcoin holders are still waiting for the next bull run, with forecasts suggesting Bitcoin could reach $149,511 by 2031.

On the Gate platform, traders can monitor the latest developments in gold, silver contracts, and cryptocurrencies simultaneously. A seasoned trader adjusts his hedging portfolio, with his screen showing stable gold trends and Bitcoin’s sharp fluctuations. Between traditional safe assets and digital assets, he finds a balance—an ever-shifting scale that constantly adjusts with market winds.