Bitcoin Surges Amid U.S. Economic Strain, Outpacing Gold in May

Bitcoin (BTC) surged 11.1% in May, breaking past key resistance levels and outperforming traditional safe-haven assets like gold, according to a new report from ARK Invest. The rally, which pushed BTC near its all-time highs at $109,896.28, is unfolding against a backdrop of mounting economic pressures in the U.S., especially in the housing and auto sectors.

ARK attributes part of Bitcoin’s momentum to capital reallocation as traditional asset classes show signs of stress. In real estate, the Federal Reserve’s aggressive rate hikes since 2022 have dampened affordability, leading to a sharp imbalance between sellers and buyers. Housing, which remains a major contributor to household net worth, is under increasing price pressure.

Meanwhile, U.S. auto sales collapsed in May, falling from over 17 million units to just 15.6 million. This drop followed an earlier surge tied to anticipated tariffs, suggesting instability in consumer demand.

Amid these conditions, investors are turning to Bitcoin as a hedge and yield-generating alternative. Spot Bitcoin ETFs saw $5.5 billion in inflows during May—more than three times the amount attracted by gold ETFs, which experienced notable outflows.

Importantly, ARK emphasized that the current BTC rally lacks the hallmarks of speculative excess. Unlike previous bull markets, profit-taking remains subdued and unrealized gains are significantly below peak bubble levels.

As housing and automotive markets falter, Bitcoin is increasingly viewed as a strategic asset rather than a speculative play. ARK’s analysis suggests that BTC is benefiting from a broader shift in capital allocation, as investors seek resilience in the face of tightening financial conditions. With measured investor behavior and growing ETF demand, Bitcoin appears to be solidifying its role as a store of value in an uncertain macroeconomic environment.