#WhyAreGoldStocksandBTCFallingTogether?

As of February 2026, markets are experiencing one of the most significant "liquidity earthquakes" in recent years. To understand why gold and Bitcoin—which are typically expected to act as alternatives or move inversely—are plummeting simultaneously, it is necessary to examine three main waves occurring deep within the financial system.
1. Liquidity Crunch and the "Cash is King" Era
The primary reason behind the current decline is not a loss of faith in the inherent value of these assets, but rather an urgent need for cash. The general market turbulence has placed large funds and investors under "margin call" pressure. In such scenarios, institutions don't consider what they want to sell, but rather what they can sell the fastest. Due to their high liquidity, gold and Bitcoin become the first "sacrificial" assets during these crisis moments. In other words, these premier "fortress" assets are liquidated to cover losses in stocks or other positions.
2. The "Hawkish" Fed and Dollar Strength
The nomination of a figure like Kevin Warsh, who advocates for more restrictive monetary policies, for the Fed Chairmanship has abruptly cut off "cheap money" expectations in the markets. Rising bond yields have overshadowed the appeal of gold, which offers no interest, and Bitcoin, which thrives on risk appetite, in the short term. The rapid appreciation of the U.S. dollar against other currencies has created downward pressure on both commodity and digital asset prices.
3. Speculative Saturation and Technical Correction
By the end of January, as gold neared $5,500 and Bitcoin approached record levels, a severe "overbought" condition had emerged in the market. The sharp pullback seen in both assets is essentially a "cleansing" phase following unhealthy growth. Analysts emphasize that the decline in gold mining stocks, in particular, stems from general market fear rather than operational costs.
In summary; this simultaneous decline is a result of the deleveraging within the global financial system and a rush to cash, rather than a deterioration in the fundamental value of the assets themselves.