Gold and Bitcoin Top the List of Losers in 2026
Gold and Bitcoin are having an exceptional year in 2026, having posted the worst performance among major asset classes a striking paradox despite ongoing war and geopolitical tensions.
The year 2026 saw unusual performance in the financial markets, with both gold and Bitcoin topping the list of worst-performing assets since the start of the year, despite ongoing geopolitical tensions and the war in the Middle East conditions that have historically supported safe-haven assets, particularly gold.
A number of market experts believe that what is happening this year represents an unprecedented shift in investor behavior, with a significant portion of capital shifting toward artificial intelligence stocks and high-yield assets, alongside ongoing pressures stemming from U.S. monetary policy.
Gold and Bitcoin Post the Largest Losses in 2026
According to market data, the price of Bitcoin has fallen by about 27% since the beginning of 2026, while gold has declined by more than 7% during the same period, making them among the worst-performing asset classes this year.
A market strategy expert noted that the simultaneous decline of gold and Bitcoin is a rare occurrence, explaining that in previous years, markets had not seen both assets fall at this pace, especially given the presence of war and geopolitical tensions, which typically bolster demand for safe-haven assets.
At the time of this report, the price of Bitcoin had stabilized near $64,000, while gold was trading around $4,020 per ounce.
Why Is Gold Falling Despite Geopolitical Tensions?
Gold typically benefits from political and military crises, but its performance in 2026 fell short of expectations.
This is due to several factors, most notably:
- Rising oil prices and the resulting fears of a resurgence in inflationary pressures
- The continued strength of the U.S. dollar
- Rising U.S. Treasury yields
- Growing expectations that interest rates will remain high for a longer period
- A temporary easing of tensions with Iran during certain periods, which reduced demand for safe-haven assets
Analysts also believe that investors have become more cautious toward gold, as they believe that persistent inflation may prompt the Federal Reserve to delay any interest rate cuts, which increases the cost of holding the precious metal, which does not generate a return.
Although the United States has carried out successive waves of attacks on Iran and the conflict between the two countries has continued for a fifth month, gold prices have moved within a sideways range near the $4,000-per-ounce level without recording strong gains, reflecting a shift in market behavior compared to previous crises.
Bank of America and JPMorgan Lower Their Gold Forecasts
Sentiment toward gold has deteriorated further after several major investment banks lowered their price forecasts for 2026. Bank of America lowered its average gold price forecast by 14% to $4,360 per ounce.
J.P. Morgan also lowered its forecast, expecting gold to reach around $4,300 per ounce during the third quarter, then rising to $4,500 in the fourth quarter of 2026, noting that global demand for gold may be weaker than previously estimated.
Is Bitcoin poised for a comeback?
Despite Bitcoin’s weak performance since the start of the year, some investors are still betting on a recovery for the world’s largest cryptocurrency. Options market data indicates bets that Bitcoin will rise to $72,000 before the end of the month, coinciding with anticipation of the Federal Reserve’s decision on interest rates.
Analysts believe that any signals of monetary policy easing could restore momentum to the cryptocurrency market, especially as institutional interest in Bitcoin continues and regulatory clarity surrounding digital assets increases in a number of global markets.
Furthermore, the growing legal recognition and regulation of Bitcoin within certain jurisdictions is granting it a more prominent place in investment portfolios, rather than treating it solely as a high-risk asset.
Why Are Funds Flowing into AI Stocks?
Market experts believe that one of the main reasons behind the weak performance of gold and Bitcoin is the shift of a significant portion of liquidity toward technology companies and AI stocks.
Investors have preferred to capitalize on the rapid growth of AI companies, which have delivered returns that have clearly outperformed most other asset classes this year.
U.S. Stocks Outperform Gold and Bitcoin
Unlike gold and cryptocurrencies, U.S. stock indices have continued to post strong gains since the beginning of 2026. The performance was as follows:
- Nasdaq Composite: Up nearly 10%
- S&P 500: Up about 9%
- Dow Jones Industrial Average: Gains of nearly 8%
This performance reflects investors’ continued confidence in the technology sector and major U.S. companies, despite ongoing economic and geopolitical uncertainty.
What Might Drive Gold and Bitcoin in the Coming Period?
Analysts expect markets to remain on the lookout for several key factors that could determine the direction of gold and Bitcoin during the second half of the year, most notably:
- Federal Reserve decisions on interest rates
- Developments in the war in the Middle East
- The trend in global oil prices
- The performance of the U.S. dollar and Treasury bond yields
- Continued investment flows into the artificial intelligence sector
- The level of institutional demand for gold and cryptocurrencies
If interest rates remain high for a longer period, gold and Bitcoin may remain under pressure, while any shift in monetary policy or geopolitical escalation could provide a fresh boost to both assets.
