Bitcoin jumped above $112,000 on Tuesday after dipping below $108,000 earlier in the day, as gold and silver experienced sharp declines. Gold fell 5% to $4,130, marking its largest daily drop in years, while silver tumbled nearly 8%. The move comes after months of precious metals outpacing bitcoin amid economic uncertainties.
Bitcoin, which had been stuck in a tight trading range for months despite catalysts like central bank monetary easing, U.S.-China trade tensions, and financial liquidity stresses boosting precious metals, finally caught momentum on Tuesday, October 21, 2025. The cryptocurrency surged just shy of $113,000 after falling below $108,000 hours earlier, rebounding to $112,700 by midday. At the time of reporting, bitcoin traded at $112,395.79.
Precious metals reversed their record highs, with gold plunging 5%—its biggest daily drawdown in years—and silver dropping nearly 8%. These declines followed months of surges driven by the same economic factors that had frustrated bitcoin investors.
Ether also recovered, erasing overnight losses to trade above $4,000 at $3,878.02. Analysts had anticipated such a shift. Quinn Thomson, founder of hedge fund Lekker Capital, stated last week that bitcoin is 'poised to catch up to gold's rally.' Similarly, Charlie Morris, CIO of ByteTree, argued that 'bitcoin's time to rally will come when gold rolls over to consolidate.'
Crypto-related stocks showed mixed results. Bitcoin miners like IREN, Hut 8, and Bitfarms fell 3% to 4%, while stablecoin issuer Circle dropped 1.2% and Coinbase declined 0.5%. Michael Saylor's Strategy managed a 1.7% gain.
This bitcoin rebound highlights shifting investor flows from traditional safe-haven assets to cryptocurrencies amid the metals' pullback.