Bitcoin captures a bid on Tuesday as the record rally in precious metals reverses in a big way.
Gold fell 5% to $4,130, the biggest daily move in years. Silver also fell by almost 8%. The metals had risen sharply over the past few months, driven by central banks moving into monetary easing, US-China trade tensions and signs of liquidity and credit stress in the financial system. Frustratingly for bitcoin bulls, however, these catalysts had provided a small boost to the world’s largest crypto, which – with a few brief exceptions – has been stuck in a tight range for months.
With the metals at least for the moment falling out of favor, money is pouring into bitcoin, which has risen to $112,700 after falling below $108,000 a few hours ago. Ether also erased its decline overnight, returning over $4,000.
Quinn Thomson, founder of hedge fund Lekker Capital, said last week that BTC is poised to catch up with gold’s rally. Charlie Morris, CIO of ByteTree, also argued that bitcoin’s time to rally will come when gold rolls over to consolidate.
Crypto-related stocks haven’t really made the news, with most in the red on Tuesday, especially bitcoin miners, many of whom are now trading more as AI infrastructure plays.
IREN (IREN), Hut 8 (HUT) and Bitfarms (BITF) are lower by 3%-4%. Stablecoin issuer Circle ( CRCL ) is down 1.2% and Coinbase ( COIN ) is lower by 0.5%. Michael Saylor’s strategy (MSTR) manages a gain of 1.7%.
Read more: Bitcoin’s October slowdown masks strength, analysts predict catch-up with gold
