Gold Glows as Bitcoin Bites Dust: A Tale of Two Markets 🐉💰

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What to know:

  • Gold rose to a record $3,721. (Because why not? It’s basically the financial equivalent of a wizard’s hat.)
  • The metal has gained 43% this year, while silver has added 50% to near $44. (Silver’s clearly the rebellious younger sibling.)
  • Bitcoin slipped 3% on Monday and has lost 3.5% since the Fed’s interest-rate cut last week, diverging sharply from gold. (Like a dragon sneezing on a tinpot dictator.)

Gold, often seen as an analog for sound money, rose 1% on Monday to set another record high and bring its 2025 gain to 43%. (It’s the financial equivalent of a 401(k) with a sense of style.)

The metal, now trading at $3,721, advanced about an hour after bitcoin, seen by some proponents as a digital form of sound money, posted a 24-hour drop of 3% that cut its price to $112,000 and its year-to-date gain to 17%. The timing suggests the possibility that profits from bitcoin liquidations rotated into gold. (Because nothing says “financial stability” like selling your crypto to buy a physical gold necklace. 💍)

The two assets rarely move in tandem, though there are occasional periods when both rise or fall simultaneously, often with a short lag. This time, the divergence is stronger. (Like a witch’s cat and a dragon playing chess. Both end up confused.)

Gold is not the only metal attracting flows. Silver gained 1.5% on Monday to approach $44, its third-highest level since 1975, and is now up more than 50% year to date. (Silver’s clearly been following a 50% off sale. Shoppers, rejoice!)

Notably, since the Federal Reserve cut interest rates by 25 bps on Sept. 17, both gold and the S&P 500 are up about 1%. At the same time, U.S. treasury yields have risen, with the U.S. 10-year at 4.125% (up 2.5%) and the U.S. 30-year at 4.7% (up 2%). (The Fed: because who doesn’t want to play god with the economy?)

The dollar strengthened, with the DXY index adding 1% to 97.5. A stronger dollar typically puts pressure on risk assets, and bitcoin has dropped over 3.5% since the Fed’s move. (Bitcoin’s current mood: “I’m fine, thanks for asking.”)

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2025-09-22 13:53