Bitcoin price roared past $113,000 today, climbing from $108,000 earlier in the session, as traditional safe-haven assets took a hit.
Spot gold extended its losses to $4,085.39 per ounce, down more than 6%, while spot silver plunged as much as 8.7%, marking its steepest drop since 2021.
Bitcoin’s surge came after Federal Reserve Governor Christopher Waller signaled a major shift in U.S. crypto policy, announcing a “skinny master account” program. This initiative would give eligible fintechs and digital-asset firms limited, direct access to the Fed’s payment system, bypassing traditional banks.
Waller framed distributed ledgers, DeFi, and crypto assets as integral to mainstream finance. The Fed is actively exploring ways to integrate emerging financial technologies with legacy infrastructure.
The sell-off of precious metals has raised questions on social media about whether investors are rotating capital from gold and silver into bitcoin.
Bitwise: A small gold shift could spark Bitcoin price rally
Bitwise’s Crypto Market Compass Report from today suggested that bitcoin had been positioned for a potential rebound this quarter, with the possibility of a broader rally if even a small fraction of capital rotated from gold into crypto.
The firm emphasized that just a 3–4% shift from gold could have theoretically doubled bitcoin’s price, reflecting the stark difference in market capitalization between the two assets.
The analysis pointed to several supportive factors. Market sentiment, despite recent underperformance, indicated a significant degree of seller exhaustion.
Rising stress in U.S. regional banks had also amplified systemic financial risks. Bitcoin, as a counterparty risk-free asset, could have benefited as investors looked for alternatives outside traditional financial institutions.
At the same time, signals that the Federal Reserve might pause or even reverse Quantitative Tightening could have accelerated liquidity growth in the U.S. and globally. Gold historically responds strongly to easier monetary conditions, and bitcoin appears poised to follow suit, according to Bitwise.
Bitwise further noted that Bitcoin’s performance relative to gold tended to track shifts in risk appetite. During periods of renewed “risk-on” sentiment, Bitcoin has historically outperformed gold, meaning even a minor rotation of capital could produce outsized effects.
Overall, Bitwise framed the current market setup as highly favorable for Bitcoin. Even a small reallocation from gold money into Bitcoin could spark a meaningful rally.
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