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Gold Rallies an Hour After Bitcoin Drops, Suggesting a Profit Rotation Into Metals
Safe-haven flows pushed gold to new records while bitcoin stumbled, highlighting shifting investor dynamics.
Sep 22, 2025, 9:51 a.m.
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What to know:
- Gold rose to a record $3,721.
- The metal has gained 43% this year, while silver has added 50% to near $44.
- Bitcoin slipped 3% on Monday and has lost 3.5% since the Fed's interest-rate cut last week, diverging sharply from gold.
Gold, often seen as an analog for sound money, rose 1% on Monday to set another record high and bring its 2025 gain to 43%.
The metal, now trading at $3,721, advanced about an hour after bitcoin , seen by some proponents as a digital form of sound money, posted a 24-hour drop of 3% that cut its price to $112,000 and its year-to-date gain to 17%. The timing suggests the possibility that profits from bitcoin liquidations rotated into gold.
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The two assets rarely move in tandem, though there are occasional periods when both rise or fall simultaneously, often with a short lag. This time, the divergence is stronger.
Gold is not the only metal attracting flows. Silver gained 1.5% on Monday to approach $44, its third-highest level since 1975, and is now up more than 50% year to date.
Notably, since the Federal Reserve cut interest rates by 25 bps on Sept. 17, both gold and the S&P 500 are up about 1%. At the same time, U.S. treasury yields have risen, with the U.S. 10-year at 4.125% (up 2.5%) and the U.S. 30-year at 4.7% (up 2%).
The dollar strengthened, with the DXY index adding 1% to 97.5. A stronger dollar typically puts pressure on risk assets, and bitcoin has dropped over 3.5% since the Fed’s move.
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Rampant speculation on crypto derivatives platforms is fueling volatility and risking bitcoin’s image as a stable hedge, says BlackRock’s digital assets chief.
What to know:
- BlackRock digital-assets chief Robert Mitchnick warned that heavy use of leverage in bitcoin derivatives is undermining the cryptocurrency’s appeal as a stable institutional portfolio hedge.
- Mitchnick said bitcoin’s fundamentals as a scarce, decentralized monetary asset remain strong, but its trading increasingly resembles a "levered NASDAQ," raising the bar for conservative investors to adopt it.
- He argued that exchange-traded funds like BlackRock’s iShares Bitcoin ETF are not the main source of volatility, pointing instead to perpetual futures platforms.
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