Gold hit a new record high Tuesday, while billions exited major crypto exchanges. Futures briefly crossed $4,200 per ounce before closing at $4,197.6 in New York trading Tuesday, according to data from CME Group. Trade publication The Kobeissi Letter characterized the turn as “the first time in history” that gold has crossed the mark, noting that the asset is up nearly 60% in 2025 alone. The move came as CoinGlass data showed over $21 billion in outflows from Binance and continued withdrawals across other top exchanges, less than a week after crypto markets crashed in what’s now dubbed as the latest “Black Friday” that saw Bitcoin and other digital assets pare down in price as crypto ETF flows reversed, following suit. Analysts observe the divergence between gold and crypto as a shift in risk appetite. “Gold's record high signals acute risk aversion amid trade turmoil, while crypto's Binance-led outflows reflect leveraged positions unwinding in risk assets,” Charles d'Haussy, CEO at dYdX Foundation, told Decrypt. Shawn Young, chief analyst at MEXC Research, called the surge a “flight-to-safety rotation rather than a deep structural unwind,” reflecting how investors are “de-risking ahead of the Federal Reserve’s Beige Book release.” A “key sentiment pivot” The Beige Book is the Fed’s regional economic survey, scheduled for release Wednesday at 2 p.m. ET. It compiles qualitative and anecdotal reports from the Fed’s 12 regional banks to gauge economic conditions and guide policymakers ahead of each interest rate meeting. The next FOMC meeting commences on the 28th of this month, per the Federal Reserve calendar. Qualitative data from the survey could “become a key sentiment pivot,” Young noted. “If the data points to broad-based cooling across regional economies and easing price pressures, markets could quickly reprice for a more dovish Fed trajectory.” On prediction market Myriad, launched by Decrypt’s parent company DASTAN, a clear majority of users expect gold to outperform Bitcoin in 2025, placing a 76% chance on the outcome.  Still, the parallel between gold’s surge and the crypto market’s downturn does not mean “capital abandoning crypto permanently,” Young noted. Instead, he attributes the move to capital “seeking temporary shelter.” “Historically, when traders look out for potential tightening or hawkish commentary, liquidity migrates from high-beta assets like crypto toward non-yielding stores of value such as gold and short-term Treasuries,” he said. Such a pattern fits “the playbook of a tactical repositioning” to preserve liquidity until such time “the macro picture becomes clearer,” he said, adding that once policy narratives stabilize, much of the “sidelined capital” would tend to rotate back into digital assets. The rotation may persist if macro pressures deepen, according to Ryan Yoon, senior analyst at Tiger Research. This week’s market movements show a “classic risk-off rotation” where policy uncertainty “pushes flows toward gold while deleveraging hits crypto,” Yoon told Decrypt. Whether it persists depends on “actual liquidity tightening,” he added. Macro factors such as “sticky inflation keeping real rates elevated” alongside “geopolitical risk premium (tariffs, fiscal concerns)” which could favor “hard assets over speculative beta,” Yoon notes.  Yoon attributed the “ongoing repricing pressure” to the rate cut expectations, with the Beige Book possibly shifting sentiment if “labor market deterioration” overrides inflation concerns. Beyond liquidity rotation, d’Haussy said these movements could be “the onset of a broader risk-off cycle, with gold decoupling as the ultimate hedge and BTC lagging.” Looking ahead, investors could “expect crypto volatility to spike further if equities falter,” d'Haussy added.