Bitcoin Outpaces Bullion Amid US-Iran De-escalation, Cathie Wood Flags Shift In Market

• Bitcoin rose over 8% over the past week, rebounding from recent lows and outperforming gold.
• The divergence came as the US-Iran ceasefire talks progressed, easing demand for traditional safe-haven assets
• Bitcoin traded above the $ 72,000 level on Saturday, while gold hovered near $4,750 per ounce. 

Bitcoin (BTC) climbed sharply this week, rising nearly 9% and outperforming gold, as easing geopolitical tensions and renewed diplomatic efforts shifted investor sentiment across markets.

This happened as diplomatic talks between the US and Iran started to progress. On Saturday, US Vice President JD Vance arrived in Islamabad to lead ceasefire talks, with senior Iranian officials also participating in discussions aimed at de-escalating the conflict. Earlier this week, on Tuesday, President Donald Trump announced that he would stop military action against Iran, opening the door for negotiations. 

Bitcoin’s price was trading at $72,887, up over 1% over the past 24 hours and about 8% over the past week, recovering from earlier lows near $67,000. On Stocktwits, the retail sentiment around BTC remained in the ‘bullish’ zone, while chatter around it remained at ‘neutral’ levels over the past day.

In contrast, gold prices were slightly lower over the week, trading near $4,750 per ounce and slipping marginally as demand for safe-haven assets softened. On Stocktwits, retail sentiment around SPDR Gold Shares (GLD) remained in the ‘bearish’ zone, while chatter stayed at ‘low’ levels over the past day.

Cathie Wood Flags Bitcoin’s Shift Against Gold

Cathie Wood, the CEO of Ark Invest, also talked about the recent move. She said Bitcoin had resumed outperforming gold after a period of divergence. She said that the relationship between the two assets had changed in recent years, especially after the Federal Reserve began tightening monetary policy in 2022, which caused gold and Bitcoin to stop moving together.

Wood said, "Bitcoin has been going up compared to gold again." She said that changing expectations about interest rates could be a big reason. She added, "We're probably going to be surprised that interest rates are going down instead of up." 

Wood also linked the shift in part to expectations around Federal Reserve leadership, referring to Kevin Warsh as a potential next Fed chair and describing him as “slightly hawkish.”

Read also: JD Vance Lands In Islamabad For High-Stakes Peace Talks With Iran

For updates and corrections, email newsroom[at]stocktwits[dot]com.