Bitcoin rose to $126,000 on October 6, hitting a new all-time high, while gold followed two days later, topping $4,070 per ounce. The simultaneous rally in both assets underscores increased investor interest in alternatives as traditional markets face uncertainty.
Gold is up about 52% this year, compared to Bitcoin’s 32% rise. While Bitcoin’s rise was largely driven by institutional demand through ETFs, gold benefited from central bank buying and safe haven flows, and China and other BRICS nations actively increased their reserves.
Gold’s market capitalization now exceeds $27 trillion, more than ten times Bitcoin’s $2.6 trillion. In the last three months, gold has gained almost $4.2 trillion, roughly equivalent to the current total value of all cryptocurrencies combined.
Bitcoin ETF Inflows and Supply Restrictions
bitcoin has seen a wave of institutional activity. On Monday, Bitcoin spot ETFs received $1.2 billion in inflows, the second-largest single-day inflow in recent memory. ETFs provide a steady source of demand and increase liquidity, which can reduce volatility in large trades.
Meanwhile, Bitcoin balances on exchanges have fallen to multi-year lows, meaning fewer coins are available for immediate sale. This amplifies the price effect when ETF-driven purchases occur.
Market conditions also support Bitcoin. Weaker U.S. economic data and increased odds of a rate cut by the Federal Reserve have encouraged investors to allocate capital to digital assets. October seasonal patterns historically favor cryptocurrency gains, further boosting sentiment.
Demand for gold by central banks and investors
Central banks, particularly in China and the BRICS countries, continue to purchase around 1,000 tonnes of gold per year, maintaining a stable base for prices. Gold-backed ETFs have also seen new inflows, broadening the demand base beyond government holdings.
Economic and political uncertainty contributes to gold’s appeal. Expected rate cuts from the Federal Reserve, a weaker US dollar and geopolitical tensions, including the US government shutdown, have channeled additional investments into the yellow metal.
Performance of other cryptocurrencies
While Bitcoin hit new highs, other cryptocurrencies showed mixed results. Ethereum fell 2% to $4,380, BNB fell 2% to $1,285, and Solana rose 1% to $224.
Privacy-focused coins fared better. Zcash (ZEC) rose 38%, extending a two-week gain of 140%, driven by renewed access through Grayscale and support from prominent investors. Bitcoin and Ethereum ETFs continued to see inflows, indicating sustained institutional interest.
On the adoption front, Jack Dorsey’s Block enabled merchants to accept Bitcoin payments and convert them to fiat within the Square ecosystem. The Luxembourg Intergenerational Wealth Fund allocated 1% of its portfolio to Bitcoin ETFs, indicating growing institutional confidence.
ETF Changes and Corporate Bitcoin Purchases
Bitwise and 21Shares updated their Ethereum and Solana ETFs to allow staking and reduce management fees to 0.2%. NYSE-listed DayDayCook purchased 10,000 BTC for its treasury, spending $124 million, marking one of the largest corporate Bitcoin acquisitions this quarter.
NFT and Web3 developments
NFT markets remained largely stable. CryptoPunks was trading at 48.4 ETH, BAYC at 8.81 ETH, and Pudgy Penguins at 9.4 ETH. Doodles rose 6%, while emerging protocols such as Check Strategy (CHKSTR) and Punk Strategy experienced high volatility, peaking at $5 million before stabilizing lower.
Other important Web3 updates:
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Jupiter launched Jup USDa stablecoin on Solana.
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CCP Games announced EVE Bordera survival MMO based on Sui.
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Coin flow increase $25 million to expand stablecoin commercial payments.
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Plume acquired Money to integrate institutional DeFi staking and returns.
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Fun with soccer points launched a product focused on the NFL.
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hyperexchange scheduled a token generation event for October 20.
Investor Perspective: Bitcoin and Gold Comparison
Gold remains a stable asset for central banks and institutional portfolios, providing low-risk value preservation. Bitcoin is gaining traction through ETF inflows and corporate treasury acquisitions, gradually becoming a more accepted financial instrument in major markets.
Even though Bitcoin’s market capitalization remains well below gold’s $27 trillion, recent corporate and ETF activity shows growing adoption. Investors who diversify across both assets can combine gold’s stability with Bitcoin’s exposure to digital markets, balancing risk and potential growth.
Also read: Polygon Rio Hardfork Launched for Stablecoin Transactions