Bitcoin’s price soared past $113,000 today, rising from $108,000 earlier in the day as traditional safe-haven assets experienced a decline.
Spot gold saw its prices drop to $4,085.39 per ounce, a decrease of over 6%, while spot silver fell by as much as 8.7%, marking its most significant drop since 2021.
This surge in Bitcoin coincided with Federal Reserve Governor Christopher Waller announcing a substantial change in U.S. cryptocurrency policy, introducing a “skinny master account” program. This initiative would allow eligible fintechs and digital-asset companies limited, direct access to the Fed’s payment system, bypassing traditional banking channels.
Waller positioned distributed ledgers, DeFi, and crypto assets as crucial components of mainstream finance. The Fed is actively seeking ways to merge emerging financial technologies with existing infrastructure.
The decline in precious metals has sparked discussions on social media regarding the potential capital shift from gold and silver towards Bitcoin.
Bitwise: A minor gold shift could trigger a Bitcoin price surge
According to Bitwise’s Crypto Market Compass Report released today, Bitcoin is positioned for a potential rebound this quarter, with the potential for a larger rally if even a small portion of capital shifts from gold to crypto.
The firm highlighted that a mere 3–4% transition from gold could theoretically double Bitcoin’s price, illustrating the stark contrast in market capitalizations between the two assets.
The analysis pointed to several supporting factors. Despite recent underperformance, market sentiment revealed a significant level of seller exhaustion.
Additionally, increasing stress among U.S. regional banks has heightened systemic financial risks. As a counterparty risk-free asset, Bitcoin could gain as investors seek alternatives outside conventional financial institutions.
Simultaneously, indications that the Federal Reserve may pause or even reverse Quantitative Tightening could accelerate liquidity growth both in the U.S. and globally. Historically, gold responds strongly to more accommodating monetary conditions, and Bitcoin seems ready to follow suit, according to Bitwise.
Furthermore, Bitwise noted that Bitcoin’s performance relative to gold tends to mirror shifts in risk appetite. During phases of renewed “risk-on” sentiment, Bitcoin has historically outshined gold, suggesting that even a slight shift in capital could yield significant effects.
Overall, Bitwise described the current market environment as particularly favorable for Bitcoin, indicating that even a small reallocation from gold to Bitcoin could catalyze a substantial rally.
