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Bitcoin fell more than 5% to around $83,400 during overnight trading and failed to recover, while gold rebounded sharply after an initial plunge triggered by rising US-Iran tensions.
The sell-off followed warnings from Donald Trump over potential military strikes on Iran, a looming US government shutdown and a broader risk-off shift across global markets.
Gold dropped as much as 7% before staging a rapid V-shaped recovery, with analysts at The Kobeissi Letter noting a $5.5 trillion swing in market capitalisation in what they described as the largest daily move on record.
US equities proved relatively resilient, with the Nasdaq down just 0.7% as a 10% surge in Meta offset sharp losses in Microsoft tied to AI spending concerns.
Bitcoin, by contrast, managed only a weak bounce to about $84,200, reinforcing doubts over its role as either a safe haven or a risk asset during periods of macro stress.
Analysts say the divergence reflects structural weakness in crypto markets, including persistent outflows from spot bitcoin ETFs and falling institutional interest measured by the Coinbase Premium Index.