Profit Flows Move From Bitcoin to Gold, Driving Metal Rally

Gold Hits Record as Bitcoin Retreats, Indicating Profit Rotation Into Metals
22 September 2025

Investor demand for safe-haven assets pushed gold to new highs on Monday while Bitcoin pulled back, highlighting a rotation from digital assets into traditional stores of value.

Market Moves

• Gold rose 1% to $3,721, reaching another all-time high and lifting its year-to-date gain to 43%.
• Bitcoin (BTC) declined 3% to $112,000, trimming its 2025 gains to 17%. The timing of gold’s rally suggests profits from bitcoin liquidations may have flowed into precious metals.

Asset Divergence
Bitcoin, often called “digital gold,” and traditional gold rarely move in lockstep. While short-term correlations can occur, this week’s movements show a pronounced divergence, with gold climbing as Bitcoin fell.

Silver and Other Metals

• Silver gained 1.5% to $44, approaching its third-highest level since 1975 and posting over 50% gains year-to-date.

Macro Backdrop
Following the Federal Reserve’s 25-basis-point rate cut on September 17, gold and the S&P 500 have both advanced roughly 1%. At the same time, U.S. Treasury yields rose, with the 10-year at 4.125% (+2.5%) and the 30-year at 4.7% (+2%).

The U.S. dollar strengthened, with the DXY index up 1% to 97.5, typically weighing on risk assets. Bitcoin has dropped more than 3.5% since the Fed’s decision, reinforcing a rotation of capital into traditional safe-haven metals like gold and silver.