In a surprising turn of events, Bitcoin (BTC) and gold have been identified as the worst-performing major assets of the year 2026, with declines of 7.3% and 7.5%, respectively. This data comes from Charlie Bilello, a strategist at Creative Planning, who notes that this situation is unprecedented in his extensive records dating back many years.

Typically seen as safe-haven investments, both Bitcoin and gold are commonly purchased to hedge against inflation and volatile market conditions. However, contrasting trends emerge as a diverse basket of commodities reported a notable increase of 52.5%, while US large-cap stocks experienced a rise of 12.3%. Furthermore, returns from short-term Treasury bills stood at 2.9%.

How Far Bitcoin and Gold Have Fallen in 2026

Bilello’s analysis encompasses 21 asset classes from 2011 onward, revealing that a mere 57% of these classes are showing positive returns in 2026. This year, gold’s decline follows an impressive 63.7% increase in 2025, marking its best performance throughout the years surveyed. Gold’s spot price peaked above $5,400 per ounce in early 2026 but has since fallen significantly, closing at $3,995.81 as it dipped below $4,000 for the first time since July.

Bitcoin is now approaching its second consecutive year of losses, having already seen a 6.3% decrease in 2025. Currently, it is trading around $80,472, which is approximately 35% lower than its all-time high of over $126,000 recorded last October.

Factors Influencing the Decline of Bitcoin and Gold

Neither Bitcoin nor gold offers interest payments, which poses a challenge when interest rates rise. This situation compels investors to consider alternatives that yield income, such as bonds or cash instruments.

Recent geopolitical tensions, particularly between the US and Iran, have contributed to surging oil prices, with Brent crude hitting $116 per barrel. Rising oil prices tend to exacerbate inflation, prompting the Federal Reserve (Fed) to consider increasing interest rates.

The Fed is scheduled to announce its monetary policy decisions shortly, with market expectations indicating a 68% probability of a rate hike in the upcoming December meeting, according to CME FedWatch data.

An analysis from ING noted that gold has not capitalized on recent volatility in technology stocks, indicating a broader market concern focused more on escalating oil prices and its implications for inflation. As quoted by ING analysts, “…the market appears more focused on higher oil prices and what it could mean for inflation.”

Long-term Performance: A Broader Perspective

Despite the challenges faced in 2026, Bilello’s long-term analysis reveals a different narrative. Since 2011, Bitcoin has averaged an impressive annual return of 120.6%, leading all assets, while gold has returned a modest 6.3% over the same period.

As the year draws to a close, the performance rankings of these assets may still shift, keeping investors on alert.