Bitcoin prices rose above $113,000 today, up from $108,000 earlier in the session, as traditional safe-haven assets took a hit.
Spot gold widened its decline by more than 6% to $4,085.39 an ounce, while spot silver fell by as much as 8.7%, its biggest decline since 2021.
Bitcoin’s surge came after Federal Reserve Governor Christopher Waller announced a “Skinny Master Account” program, signaling a major shift in U.S. crypto policy. The initiative would give eligible fintech and digital asset companies limited, direct access to the Fed’s payments system, bypassing traditional banks.
Waller positioned distributed ledgers, DeFi, and crypto assets as integral to mainstream finance. The Fed is actively exploring ways to integrate emerging financial technologies with traditional infrastructure.
Questions have surfaced on social media about whether investors are circulating money from gold and silver into Bitcoin following the decline in precious metals.
Bit by Bit: A Small Shift in Gold Could Cause a Rise in Bitcoin Prices
Today’s Bitwise Crypto Market Compass report suggested that Bitcoin is positioned for a potential rebound this quarter, with the potential for a broader rally if even a small portion of capital switches from gold to crypto.
The company highlighted that a shift of just 3-4% away from gold could theoretically double the price of Bitcoin, reflecting the clear difference in market capitalization of the two assets.
The analysis pointed to several supporting factors. Despite recent poor performance, market sentiment indicated a significant degree of seller fatigue.
Rising stress at U.S. regional banks also amplified systemic financial risks. Bitcoin could have benefited from being a risk-free asset for counterparties as investors looked for alternatives outside of traditional financial institutions.
At the same time, a signal that the Federal Reserve might pause or reverse quantitative tightening could have accelerated U.S. and global liquidity growth. According to Bitwise, gold has historically responded strongly to easy financial conditions, and Bitcoin appears poised to follow suit.
Bitwise further noted that Bitcoin’s performance relative to gold tends to track changes in risk appetite. Bitcoin has historically outperformed gold during periods of renewed “risk-on” sentiment, meaning that even a small turnover of capital can create a big effect.
Overall, Bitwise finds the current market environment to be very favorable for Bitcoin. Even a small reallocation from gold to Bitcoin can cause a meaningful rally.
Source: https://bitcoinmagazine.com/markets/bitcoin-price-surges-past-113000
