“Digital gold lags behind its physical counterpart. While Bitcoin (BTC) and gold have previously exhibited a strong correlation, often moving together as safe-haven assets, recent market movements suggest that this relationship is breaking. Around mid-October, the precious metal continued to hit new highs, while Bitcoin suffered a significant drop from a peak of 126,000 […]”, — write: businessua.com.ua
Digital gold lags behind its physical counterpart. Although Bitcoin (BTC) and gold have previously shown a strong correlation often moving together as safe assets recent market movements indicate gap of this connection. Around the middle of October, the precious metal continued reach new highs whereas Bitcoin has seen a significant drop from a peak of $126,000, which was reached on October 6. Let’s examine this correlation loss.
Key points of this article:
- It looks like Bitcoin has currently lost its correlation with gold as the two assets have moved in opposite directions since October 2025.
- The mass liquidation of Bitcoin ETFs and heavy Tether gold buying have played a major role in this troubling divergence.
Bitcoin and Gold: A clear divergence is looming between the two reserve assets In recent years bitcoin was considered as safe harbor similar to gold which investors turn to in times of economic uncertainty. However, since the beginning of October, these two assets went their separate ways .
According to analyst Caroline de Palmas of ActivTrades, quoted by Fortune, gold reached record levels, which reflects growth over 50% by 2025 which is his ” the best indicator since 1979 “. And vice versa, November 21 bitcoin fell to a low of -35% from its peak on October 6, 2025, before recovering to about -30% from its all-time high on November 25.
But which ones reasons of this disagreement? Fortune magazine’s analysis cites two: bitcoin ETF exit and buying gold for him tokenization through stablecoins based on gold metal.
BTC ETF liquidation and Tether’s massive gold purchases highlight decorrelation One of the main factors in the fall in the price of Bitcoin seems to be liquidation of ETFs (exchange-traded funds) of this cryptocurrency . These exchange-traded financial products have suffered massive outflow of capital, which in the last four weeks of trading amounted to 4.3 billion dollars .
At the same time, part of the cryptocurrency sector has become a buyer of gold . Really, Tether known as the dollar stablecoin issuer USDT bought the precious metal in significant quantities for both its Treasuries and USDT, as well as of its gold stablecoin XAUT .
In a recent investment bank report Jefferies which was cited by the Reuters agency, explains that Tether accumulated almost 100 tons of gold until 2025, inclusive 26 tons only in the third quarter (July-September). This last quantity is 2% of global demand on precious metal and even equivalent 12% official purchases of central banks (estimated at 220 tons per quarter).
As of September 30, 2025, Tether held total 116 tons of gold (worth approx 15.5 billion dollars ), which makes it the largest non-state holder precious metal, competing with the reserves of countries such as South Korea and Greece. This increased demand for the precious metal causing its price to rise, further widening the gap with Bitcoin .
STEADY LADS $100,000 PORTFOLIO MONITORING Distribution as of 11/25/25:
💵 Stablecoins: 59% — 💰 Cryptocurrencies: 41%
The Steady Lads portfolio remains balanced: Kara maintains a balanced allocation and keeps a large portion in stablecoins to survive the correction. If Bitcoin recovers to the $100,000 mark, a strategic reduction in exposure may be considered.
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Source: journalducoin.com
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