bitcoin is catching a bid on Tuesday as the record rally in precious metals reverses sharply.
Gold saw a 5% drop to $4,130, its biggest daily drop in years. Silver also fell almost 8%. Metals had soared in recent months driven by the adoption of monetary easing measures by central banks, trade tensions between the United States and China and signs of liquidity and credit stress in the financial system. Frustratingly for bitcoin bulls, however, those catalysts had provided little momentum for the world’s largest cryptocurrency, which, with a couple of brief exceptions, has remained stuck in a tight range for months.
However, with metals having fallen out of favor at least for this moment, money is flowing into bitcoin, which has recovered to $112,700 after falling below $108,000 just hours ago. Ether also erased its overnight decline, recovering above $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 moment of recovery will come when gold consolidates.
Cryptocurrency-related stocks haven’t really received any news, and most were in the red on Tuesday, particularly bitcoin miners, many of which are now trading higher as AI infrastructure advances.
IREN (IREN), Hut 8 (HUT) and Bitfarms (BITF) are down 3% to 4%. Stablecoin issuer Circle (CRCL) was down 1.2% and Coinbase (COIN) was down 0.5%. Michael Saylor’s (MSTR) strategy is making a 1.7% gain.
Read more: Bitcoin’s October slowdown masks its strength, analysts predict it will catch up to gold
