Bitcoin Outperforms Gold and Stocks: Is Capital Rotating?

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Oh, what a surprise! Since early March, Bitcoin has been galloping ahead, leaving both gold and US stocks in the dust. And here we are, watching the world burn in the Middle East, yet somehow, Bitcoin’s price is throwing a party. Is this the “rotating capital” we’ve all been hearing about? Apparently, yes, it might be.

It seems that geopolitical chaos combined with Bitcoin’s price performance has led some analysts to declare that Bitcoin is doing exactly what it was created for: providing an escape hatch for anxious investors. And honestly, who can blame them? Gold? Nah, too old school. Bitcoin? Now that’s the new rebel on the block.

Meanwhile, signs are suggesting that March’s recovery is just getting started, like the opening credits of a movie where we already know who the hero is. Spoiler: it’s Bitcoin.

Bitcoin Outperforms Gold Amid Military Conflict

André Dragosch, an analyst at Bitwise, couldn’t help but notice Bitcoin’s performance, which has far outpaced US equities and gold since March. Yes, you read that right. While Israel and Iran play their geopolitical games, Bitcoin is busy growing. What a time to be alive!

Since the beginning of March, after Israel decided to spice things up with attacks on Iran, gold’s price has fallen from $5,400 to a pitiful $5,000. Bitcoin, on the other hand, took this as an opportunity to flex, going from $65,000 to $75,000. Classic Bitcoin move-always making a comeback when others are busy losing their cool.

Investors are all cautious and jittery because of all the geopolitical and macroeconomic uncertainty, but the latest Bitwise report suggests that this may be the beginning of something much bigger. Maybe it’s the birth of a new capital rotation? Who knows? Time will tell.

“This could signal the early stages of a rotation from stretched safe-haven assets into risk assets like BTC,” said André Dragosch, essentially dropping the mic.

But wait, there’s more! Bitwise also points out that gold’s performance typically leads Bitcoin by four to seven months. Translation: if gold’s peak is already behind it, Bitcoin’s rally could stretch on for a few more months before it decides to take a nap. Oh, and a little military conflict could push Bitcoin even higher. Who knew war could be so… profitable?

“Maybe it takes a physical conflict to realise Bitcoin remains the most portable (cross-border), digital and liquid asset with no counter-party risks,” said Bernstein analyst Gautam Chhugani, adding some wisdom to the mix.

Bitcoin’s Internal Market Signals Improve in March

Meanwhile, let’s take a look at Bitcoin’s internal market. The Inter-Exchange Flow Pulse (IFP) is showing signs of life, rising above its 90-day moving average. Oh, it’s turning bullish, alright. This means liquidity flows are starting to look up. That’s right, things are turning structurally positive. Who wouldn’t want in on that?

The IFP measures how much Bitcoin is being transferred between centralized exchanges. It’s like a barometer for Bitcoin’s liquidity flow, and guess what? When this baby goes above its 90-day average, big things usually follow. It’s like waiting for the rain to stop before you go outside-timing is everything.

And there’s even more good news. The CDD Multiple (Coin Days Destroyed Multiple) has dropped to its lowest point since 2022. Basically, long-term holders are holding onto their precious Bitcoin, creating less selling pressure from long-dormant coins. Talk about a solid vote of confidence in Bitcoin’s future.

“CDD Multiple signals strong long-term holder conviction… Historically, these periods often happen during consolidation phases before the next major move,” commented Alphractal, sounding like a financial fortune teller.

In the grand scheme of things, the improving internal dynamics and Bitcoin’s stellar performance amidst global instability strengthen the idea that Bitcoin is riding the wave of capital flow changes. The question is, will it hold up as a value store when 2026 rolls around? Bitcoin, you sly dog, you’re about to show us something historic.

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2026-03-17 17:00