Gold has undergone a notable correction after reaching all-time highs. On October 21st, precious metals posted their steepest single-day drop in more than 12 years.
Meanwhile, Bitcoin (BTC) is on the rise, increasing speculation among analysts that capital is shifting away from gold and into major cryptocurrencies.
Is the gold rally over?
BeInCrypto previously reported that gold prices continue to trend upward this month. Traditional safe-haven assets have seen strong demand even as the cryptocurrency market has been reeling from tariff-induced volatility following President Trump’s announcement.
In fact, long queues were seen outside bullion dealers as investors rushed to buy physical gold. Amid this rally, gold hit a new all-time high of $4,381 per ounce on Monday.
However, during gold’s record rally, analysts warned of potential market highs and an impending correction. Their warning was timely.
Gold prices plunged more than 6% on Tuesday, the steepest single-day decline since 2013. At the time of writing, gold was trading at $4,129 per ounce, down about 5% over the past 24 hours.
Gold price performance. Source: TradingView
Professional trader Peter Brandt drew attention to the scale of gold’s recent decline, noting that gold’s market capitalization plummeted by an estimated $2.1 trillion in a single day.
“In terms of market capitalization, gold’s decline today equates to 55% of the value of all cryptocurrencies in existence. @PeterSchiff’s pet stone lost $2.1 trillion in value today. That’s $2.102 trillion in value,” Brandt wrote.
What does gold’s historic decline mean for Bitcoin?
Meanwhile, Bitcoin gained momentum while gold struggled. According to data from BeInCrypto Markets, BTC has gained 0.51% in the past 24 hours.
Bitcoin (BTC) price performance. Source: BeInCrypto Markets
At the time of writing, it was trading at $108,491. According to analyst Ash Crypto, these diverging movements signal the beginning of a rotation of capital from gold to Bitcoin.
Asch previously predicted there could be a brief market downturn in October ahead of a strong fourth-quarter rally, starting with “a likely continuation of the parabolic candlelight into the last 10 days of October.” According to him, the rally in the fourth quarter will push Bitcoin and altcoins to new highs. So the current changes could perhaps be the first sign that his predictions are starting to come true.
“Yesterday, I said it was time for a major rotation from gold to Bitcoin. Today, the rotation has begun,” added Anthony Pompliano.
BTC vs. Gold has broken out!
Gold is down, Bitcoin is up.
Is safe haven rotation working? pic.twitter.com/Ng6S5d21CD
— Nick (@nicrypto) October 21, 2025
Additionally, market research firm Swissbloc pointed out that Bitcoin’s rise in price as gold falls is not new, and the same pattern has appeared before.
“In April, just before Bitcoin broke out of the macro bottom and expanded, gold fell 5% in three days while gold held steady. Investor flight to gold created a textbook pattern (indexes up, gold too). With gold and BTC moving in opposite directions, this decoupling could be the window Bitcoin needs to close out the year. ‘Pump hard, Bitcoin style. This could be your last chance.'” Read.
Against this backdrop, there is renewed interest in Bitcoin’s long-term potential compared to traditional assets. Previously, Binance founder CZ predicted that Bitcoin would eventually overtake gold.
“Prediction: Bitcoin will reverse gold. We don’t know exactly when. It may take some time, but it will happen,” CZ said.
Although it may be too early to call such a reversal, the latest market conditions are clearly in favor of Bitcoin. If this momentum continues, the current rotation could signal the early stages of a structural shift that will define the next chapter in the years-long competition between gold and Bitcoin.
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