Gold Loses $2.1 Trillion – Bitcoin Jumps to $113,000, Is the “Asset Cycle” Beginning?
The global financial markets have just witnessed one of the strangest trading days in a decade: gold – a symbol of safety – has evaporated $2.1 trillion in market capitalization in just 24 hours. While the precious metal has plummeted, Bitcoin has quickly become the center of attention as money flows seem to have begun to pivot from “physical gold” to “digital gold”.
💰 Gold shock – a signal of a new cycle?
According to market data, the huge drop in gold is equivalent to more than half of the total capitalization of the entire cryptocurrency market. Veteran analyst Peter Brandt commented that this is “one of the worst correction days in the history of precious metals”.
This event took place in the context of investors' concerns about prolonged interest rate policy and a stronger US dollar, causing gold - which is considered a hedge against inflation - to lose its short-term appeal. However, this sell-off inadvertently opened a new door for Bitcoin, which has been likened to "an upgraded version of gold".
How did Bitcoin react?
Immediately after gold lost $2.1 trillion in value, Bitcoin jumped from $104,000 to $113,000, marking an immediate reaction of speculative capital. Although the price later corrected to around $108,000, the strong recovery showed that the market's confidence in Bitcoin is still very strong.
Investor Anthony Pompliano called this "the beginning of the great cycle" - when traditional investors began to move assets from physical gold to digital assets with more liquidity and transparency.
⚖️ The Debate: “Fool’s Gold” or “Future Asset”?
While the crypto community sees this as a sign of a generational shift in assets, Peter Schiff, one of the most prominent gold advocates, maintains a different view. He quipped:
“Bitcoin is just taking advantage of this sell-off. But remember, it’s still fool’s gold.”
On the other hand, CZ, founder of Binance, believes that Bitcoin will surpass gold in the long term, as a younger generation of investors prioritize decentralized assets that can be transferred globally in seconds.
📊 Smart Money Is Moving
On-chain data shows that Bitcoin whale wallets have started accumulating again, while BTC withdrawals from exchanges have increased to a three-month high. Bitcoin is currently trading around $108,150, down 2.1% on the day but still holding its mid-term bullish structure, according to CoinGecko.
If Bitcoin closes above $112,700, analysts say a bearish breakout could occur – paving the way for the next bull run.
🔮 Conclusion: Is “Winged Gold” Taking Flight?
Gold’s decline is more than just a short-term event – it could be the start of a generational shift in how people store value.
As gold loses its luster, Bitcoin – “digital gold” – is slowly proving its place.
A new era of hedge assets may be dawning – and this time, gold is no longer front and center.