Bitcoin dropped while gold surged amid escalating tensions between Israel and Iran, as investors fled to safety. Over $1 billion in crypto positions were liquidated shortly after Israel's airstrike on Iran. Analysts note that Bitcoin's risk-asset behavior starkly contrasts with gold’s safe-haven appeal during geopolitical crises. Gold has seen a 46% rise year-to-date, while Bitcoin fell by 3.6% to $103,900 following the airstrikes. Experts pointed out that traditional gold investors typically belong to risk-averse groups, while Bitcoin appeals to younger investors who are more leveraged and volatile. This divergence indicates that Bitcoin often correlates more with tech stocks than with gold, suggesting its status as a macro asset. Market sentiment has been affected by the crisis, leading to a cautious outlook among analysts who expect Bitcoin to remain below $100,000 if Middle East tensions escalate further. In contrast, gold's stature as a stable investment continues to attract capital as uncertainties loom.

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