Gold just reached an all-time high at $4,383 per ounce.

Meanwhile, Bitcoin sits roughly 28% below its peak—marking its worst fourth quarter performance in the past seven years. What's striking? This decline happened without any major negative catalysts or widespread fear-mongering.

The divergence between these two assets is worth examining.

Here's what's likely happening: Gold is benefiting from sustained central bank accumulation and what you might call late-cycle capital rotation. Money that's getting nervous about growth prospects naturally gravitates toward the traditional safe haven. Institutions rebalancing portfolios, reserve managers diversifying into physical assets—it all adds up.

Bitcoin, by contrast, remains a risk-on asset. It correlates with growth expectations, tech sentiment, and liquidity conditions. When these macro winds shift, so does Bitcoin's demand dynamic.

The real question isn't why Bitcoin underperformed recently. It's whether this capital allocation pattern persists or reverses when risk appetite returns to markets.