Is Bitcoin Really ‘Digital Gold’? What Gold’s Record Run Reveals After the Crypto Crash
The crypto market suffered a steep crash on Friday, erasing billions in worth as Bitcoin (BTC) and different main belongings plunged.
Yet, whereas digital belongings have been reeling, gold saved shifting increased. The distinction has as soon as once more raised questions on whether or not Bitcoin can really act as a dependable retailer of worth or reside as much as its ‘digital gold’ fame.
What Happened To The Crypto Market on October 10?
On October 10, the US President introduced a 100% tariff on China, which brought on a market freefall. The complete crypto market cap dropped beneath $4 trillion to as little as $3.24 trillion.
At the identical time, Bitcoin, which peaked at an all-time high (ATH) of over $126,000 on October 6, declined over 11% and hit $107,485. Ethereum (ETH) additionally fell greater than 15%, shedding its $4,000 help degree.
Dubbed ‘Crypto Black Friday,’ the market turmoil triggered unprecedented liquidations. In simply 24 hours, over $19 billion in leveraged positions vanished, liquidating 1.6 million merchants—a brand new benchmark for volatility.
In an announcement shared with BeInCrypto, Nic Puckrin, crypto analyst and co-founder of The Coin Bureau, described the weekend’s turmoil as ‘a brutal reminder’ of how fragile the crypto market is.
“As the crypto market grows and matures, the dangers are amplified. The arrival of spot crypto ETFs and institutional curiosity has lulled buyers right into a false sense of safety, however it stays the solely market that trades after hours,” he stated.
According to Puckrin, a mixture of skinny liquidity, extreme leverage, and the rising affect of huge gamers created ‘a toxic cocktail’ that intensified the selloff. Still, the market didn’t keep down for too lengthy.
BeInCrypto reported that Trump’s remarks easing tariff conflict fears but once more impacted the market, however this time positively. Bitcoin rose past the $115,000 mark, and ETH has additionally reclaimed the $4,000 degree. Moreover, BeInCrypto Markets data confirmed that the broader market cap is greater than 5% over the previous day.
“Ironically, now that the mud has settled, many blue-chip tokens have seen a robust rebound – together with Ethereum, which is wanting significantly robust again above $4,000. As such, many spot buyers discover themselves in an analogous place to the place they have been earlier than the flash crash. This is definitely an argument towards extreme leverage in a market with fluctuating liquidity in such an unsure geopolitical local weather,” Puckrin advised BeInCrypto.
Puckrin added that the crash might have had a silver lining, because it flushed out excessive leverage and temporarily reset threat throughout the market. Still, he cautioned that Bitcoin faces a tricky path forward, needing to beat key resistance ranges earlier than it could possibly try a significant push towards a brand new all-time high this 12 months.
Bitcoin, Gold, and the Evolving Safe Haven Question
As Bitcoin confronted worth swings, gold continued its ascent. In reality, the precious metal hit a brand new file high in the present day. The steel’s regular rise amid geopolitical tensions and inflationary issues has as soon as once more fueled debate over Bitcoin’s reputation as ‘digital gold.’
While gold’s efficiency emphasizes its conventional position as a secure haven, Bitcoin’s volatility and sensitivity to macroeconomic shocks increase questions on whether or not it could possibly really rival gold as a reliable retailer of worth in occasions of disaster.
“Gold and threat belongings, together with Bitcoin, are up this night. But whereas Bitcoin is simply recovering a part of Friday’s loss, gold is buying and selling above $4,050, near a brand new file high, because it had no Friday loss to recuperate. Silver can be close to a brand new file high,” economist Peter Schiff highlighted.
Despite the contrasting efficiency, Puckrin harassed that gold’s rally just isn’t with out dangers. According to the Coin Bureau co-founder, gold’s current surge has taken on the character of a momentum commerce that may lose steam rapidly as soon as sentiment shifts.
“While it’s very attainable that gold will proceed to outperform different belongings for the foreseeable future, it has definitely develop into a crowded commerce. And which means there may be extra threat concerned in initiating publicity at this level,” he advised BeInCrypto.
After a greater than 50% rise in gold’s worth this 12 months, he urged that buyers’ focus may quickly broaden to different belongings providing related hedging qualities. These might embody different metals, commodities, tokenized real-world assets, and, importantly, Bitcoin, all of which stay comparatively undervalued towards gold.
Puckrin added that these options share gold’s attraction as safety towards inflation, foreign money debasement, and political uncertainty.
“Gold’s file run is fuelling contemporary worth projections, with Goldman Sachs now anticipating the shiny steel to succeed in $4,900 by subsequent December…..Even if gold’s rally does proceed unabated to Goldman Sachs’ 2026 year-end goal, different belongings are already taking part in catch-up. This shift might nicely develop into the dominant narrative for the the rest of 2025 as gold takes a breather,” he talked about to BeInCrypto.
Thus, the ‘Crypto Black Friday’ uncovered the market’s ongoing fragility amid world tensions. While Bitcoin has rebounded, its volatility continues to problem its ‘digital gold’ narrative. Gold’s surge, in the meantime, exhibits that conventional secure havens nonetheless maintain buyers’ belief — no less than for now.
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