• Gold’s drop below $4,000 sparks investor interest in Bitcoin ETFs, with $839 million inflows, highlighting a potential shift from traditional assets.
• Gold’s 10% plunge contrasts with Bitcoin’s 6.7% surge, indicating a potential shift in investor sentiment from traditional assets to cryptocurrencies.
• Since October 20, US-listed Bitcoin ETFs have seen $839 million in net inflows, while gold ETFs have lost $4.1 billion, indicating a shift in investor sentiment.

Thrown into the spotlight by its declining value, gold leaves investors puzzled about the future of Bitcoin and the entire cryptocurrency market. In response to gold’s drop below $4,000, Bitcoin ETFs have become the favored instrument for investors with a massive inflow of $839 million. This mood shift of market participants triggers questions about the interplay between legacy and crypto assets.

Diverging Trends

On the one hand, gold was basically in free fall for the last week, dropping by over 10%, whereas on the other hand, Bitcoin managed to soar by almost 6.7% within the same time frame. The conjunction of these two events suggests a potential shift in investor sentiment, as some money managers appear to be reallocating their portfolios from conventional securities to digital tokens.

Also Read: Bitcoin Eyes $143,000 as ETF Flows Show Gradual Market Recovery Momentum

Bitcoin ETFs Attract Inflows

Since the day of the record gold price – October 20 – US-listed Bitcoin ETFs have been the beneficiaries of net inflows to the tune of $839 million. This surge in the demand for shares of Bitcoin ETFs demonstrates that investors’ sentiment towards the cryptocurrency is progressively becoming bullish. Correspondingly, physically-backed gold ETFs have been on a withdrawal spree, losing roughly $4.1 billion in assets over the same period of time.

Also Read: Bitcoin Leads $931 Million Inflows While 7 Million BTC Return to Profit

Technical Analysis

Technically, Bitcoin’s price level is well supported as it is maintaining above its 20-week exponential moving average (EMA) and 1.0 Fibonacci retracement level.

Also Read: Metaplanet’s $500 Million Bitcoin Strategy Boosts Confidence Ahead of Fed Meeting

Such support harmony gives quite a big chance to Bitcoin to reach $150,000 by the end of this year. Analysts at JPMorgan believe that Bitcoin may hit $165,000 in 2025 as they consider it still undervalued when compared to gold.

Also Read: Binance’s CZ Criticizes Peter Schiff’s Tokenized Gold Plan as “Trust-Me-Bro” Token

Gold’s Bull Run Intact

Even after the drop, gold’s rally is essentially still there – the main reasons being record purchases by central banks and the ongoing fiscal imbalances. According to the technical perspective, gold is just going through a correction phase in its bull run, as the metal is seen holding strong above its 50-day EMA. In the past, gold has always managed to bounce back at this level of support, thus the rebounds have ranged from 4% to 33%.

Also Read: Bitcoin VS. Gold: The Market Trend For 2025 Seems Quite Similar

Conclusion

The upheaval in gold prices combined with the rush of money into Bitcoin ETFs may indicate a turning point of investor sentiment. Given the continuous shake-up in the financial world, investors should be on the lookout for the interaction between traditional and digital assets. The Community sentiment also tends to be bullish for BTC.

Backed by solid technicals and mounting use cases, Bitcoin could very well be the one to extend its rally while gold would still have the upper hand in the long run. The fate of both will be followed closely by investors in the near ‍‌‍‍‌‍‌‍‍‌future.

Also Read: Bitcoin (BTC) & Gold Surge as Stock Markets Tumble Amid Critical US Government Shutdown