Bitcoin prices have risen in recent days, reaching over $114,000 on Tuesday, October 21st, as the market regained its risk appetite.
The world’s most famous digital currency rose to $114,082.29, according to TradingView’s Coinbase data.
At this point, it was up about 10.2% from its multi-month low of about $103,500 on Friday, October 17, additional numbers from TradingView Coinbase revealed. On that day, the cryptocurrency hit its lowest price since late June.
“Bitcoin’s rally appears to be being driven by a combination of renewed risk appetite with expectations for near-term Fed rate cuts, easing macro concerns, and stabilization following last week’s leverage liquidation,” Joe DiPasquale, CEO of crypto hedge fund manager Bitbull Capital, said in an email.
Mark P. Bernegger, co-founder of cryptocurrency fund of funds AltAlpha Digital, also highlighted the change in sentiment, but offered a different explanation for the cause of the change.
“Recent signs of easing tensions in U.S.-China relations are causing a risk-on rally across assets,” he said in an emailed commentary. “President Trump’s Oct. 14 comments on tariffs (initially expanded to 100% on Chinese imports) triggered BTC to fall to $105,000, but the Chinese government’s Oct. 19 response, easing export restrictions, reversed sentiment overnight.
“This resulted in $1.5 billion inflows into the spot market, pushing BTC above $114,000,” Barnegger continued. The analyst highlighted the large outflows suffered by gold exchange-traded funds (ETFs) last week and argued that traders have moved away from the high-profile precious metal and into Bitcoin as market sentiment is tense over global debt concerns.
Armando Aguilar, an independent cryptocurrency analyst, also spoke about how more investors are turning to Bitcoin.
“Gold and silver recently experienced their biggest one-day declines in over a decade, with investors jumping into Bitcoin and other digital assets,” he said in an emailed commentary.
“Spot gold fell 6.3% to $4,082.03 an ounce from a recent high of $4,381 an ounce, representing the largest single-day percentage decline since 2013,” Aguilar noted. “Silver’s decline was even greater, with spot prices down 7% to 8.7% to $47.89 per ounce, the largest single-day decline since February 2021.”
The analyst also highlighted that Bitcoin has experienced a notable recovery since its decline late last week. “Bitcoin has rebounded from last Friday’s massive sell-off as long-term holders pulled their coins from exchanges,” he said.
Disentangling Bitcoin and fiat currencies
According to Tim Enneking, managing partner at Psalion, Bitcoin has become decoupled from fiat assets in recent days. He asserted that this is definitely a positive development for the world’s most prominent digital currency.
“BTC has been having an interesting few days,” he said in an email. “Regardless of the direction of movement, the very positive thing is that there is almost no correlation between the BTC and fiat markets (yesterday) and gold (today), which is great!”
“The more the world judges BTC and other tokens on their own merits and doesn’t lump them together as ‘risk-on’ assets, the better for BTC,” Enneking continued.
Cryptocurrencies have received a lot of attention in the past as part of an asset class that frequently migrates alongside more traditional assets such as stocks and bonds. That development was outlined in a 2016 white paper entitled “Bitcoin: Ringing the Bell of a New Asset Class.”
This situation has changed over time, with the correlation between Bitcoin and stocks increasing markedly in 2020, according to data included in an article written by CME Group economist Mark Shore.
“Daily return data from January 2014 to April 2025 reveals a correlation of 0.2 between Bitcoin and major stock indexes,” the article states.
“In 2020, the correlation between Bitcoin and the S&P 500 Index and Nasdaq 100 Index went from uncorrelated to positive, with rolling correlation jumping to around 0.5,” the article continued.
The article went on to say that “the positive correlation is not limited to a single index,” and that “this suggests that Bitcoin’s performance is more closely tied to broader economic and market conditions.”