Is ‘gold becoming roomies with Bitcoin’ and will a short squeeze trigger a rebound?

ambcryptoPublished on 2026-07-04Last updated on 2026-07-04

Abstract

Gold and Bitcoin are experiencing significant investor outflows and rising short interest in the first half of 2026, with Bloomberg analyst Eric Balchunas noting they are close to "becoming roomies" in terms of capital exits. Bitcoin, mirroring gold's weakness, saw its U.S. Spot ETFs post a net outflow of $5.4B in H1 2026—the first since their 2024 debut—while institutional positioning on the CME remained predominantly short. Despite this pressure and the potential for a prolonged downturn into Q4, a weaker U.S. jobs report recently triggered a brief recovery, with ETFs seeing net inflows and CME positioning turning positive. QCP Capital analysts suggest spot demand may be firming, but confirmation hinges on upcoming mid-July inflation data. Key short-term resistance levels are identified at $62.3K, the $65K-$67K zone, and $75K.

Gold and Bitcoin are continuing to see investor exits as the ‘debasement trade’ unwinds following slow progress as far as U.S-Iran talks are concerned. In fact, Bloomberg ETF analyst Eric Balchunas noted that the macro hedges are close to ‘becoming roomies’ in terms of capital outflows.

After the gold rush: GLD and GDX hangover getting worse, rough year, and now short interest has spiked 80% and 50% respectively via S3 data. Fast on the way to becoming roomies with bitcoin in the proverbial doghouse.

Source: X

GLD tracks long commodity investors (gold) while GDX tracks long equity positions. For gold, the 80% short interest also mirrored Bitcoin [BTC]’s weakness.

Bitcoin follows gold in capital outflows

The altcoin extended its decline in 2026 after failing to advance beyond $83K during the Q2 relief bounce. It printed a new yearly low of $57.7K this week before fronting a brief recovery to $62K following a weaker U.S jobs report.

However, for the first time since their debut in 2024, U.S Spot ETFs saw a net outflow of $5.4B in H1 2026, according to DWF Labs.

Source: DWF Labs

The CME positioning also painted a similar picture, as shown by the weekly commitments of traders (COT). COT tracks large institutional positions on the CME. In 2026, the COTs metric has been negative, with brief positive values in late March and April.

In other words, institutional players were, on average, shorting BTC in H1 2026 as ETF flows also turned negative.

Source: CryptoQuant

Although whales have accelerated BTC accumulation as institutional demand tanked, the bids were still relatively small to offset the pressure.

In fact, the weakness can be expected to persist in Q3 with a final potential BTC market cycle bottom in Q4 2026.

Is macro risk still on the table?

In the short term, however, the CME net positioning briefly turned positive. Similarly, U.S Spot ETFs saw net inflows of $221M on Thursday, breaking 10 consecutive days of net outflows. The shift followed the weaker U.S. Jobs report, which eased Fed rate hike fears.

According to QCP Capital analysts, this meant that “spot demand was beginning to firm,” but confirmation will depend on key inflation data scheduled for mid-July.

Broader confirmation of a front-end dovish repricing likely still needs the 14 Jul CPI and 15 Jul PPI prints ahead of the month-end FOMC, but the flip in flows suggests spot demand is beginning to firm.

That said, the short-term upside resistance levels were at $62.3K, the $65K-$67K zone, and $75K (200-day SMA) at press time.

Source: BTC/USDT, TradingView

Final Summary

  • BTC and gold have seen record capital outflows and rising short interest in H1 2026.
  • QCP Capital analysts noted that Spot BTC demand had begun to firm up, but confirmation was still needed.

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Related Questions

QWhat does it mean that gold and Bitcoin are 'becoming roomies' according to Bloomberg analyst Eric Balchunas?

AIt means that gold (represented by funds like GLD and GDX) and Bitcoin are experiencing similar and significant capital outflows, placing them both in a position of poor performance, referred to as the 'proverbial doghouse'.

QWhat was a key factor mentioned that briefly led to a recovery in Bitcoin's price from its yearly low?

AA weaker-than-expected U.S. jobs report, which eased fears of Federal Reserve interest rate hikes, triggered a brief recovery in Bitcoin's price to around $62K.

QAccording to the article, what was the significance of U.S. Spot Bitcoin ETFs seeing net inflows of $221M on a specific Thursday?

AIt broke a streak of 10 consecutive days of net outflows, suggesting that spot demand for Bitcoin might be beginning to firm up, according to QCP Capital analysts.

QWhat data point is highlighted as still needed to confirm a broader dovish repricing by the Federal Reserve?

AConfirmation is still needed from key inflation data, specifically the Consumer Price Index (CPI) and Producer Price Index (PPI) reports scheduled for mid-July 2026.

QWhat is the overall market weakness for Bitcoin and gold attributed to in the first half of 2026?

AThe overall weakness is attributed to the unwinding of the 'debasement trade' amid slow progress in U.S.-Iran talks, leading to record capital outflows from both assets and increased short interest.

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590 Total ViewsPublished 2025.05.13Updated 2025.05.13

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