Bitcoin (BTC) continues to fall as investors buy gold at a frenetic clip, pushing the price of bullion to new all-time highs.
Bitcoin has fallen 2% over the last 24 hours to trade just below $113,000 U.S. and is now nearly 10% below its record high of $124,496 U.S. reached on Aug. 14 of this year.
At the same time, the price of gold rose 2% on Sept. 22 to trade at a record high of $3,775.10 U.S. per ounce.
Bitcoin and gold are seeing their prices diverge as a growing number of investors, particularly large institutions and hedge funds, grow more risk averse.
While individual retail investors continue to bid stocks up to record highs, many professional money managers are turning bearish amid geopolitical and economic uncertainty.
Nervous investors continue to buy gold, which is seen as a safe haven asset in times of turmoil and uncertainty.
Gold also continues to get a boost from buying by central banks around the world, which are stockpiling the precious metal.
As a result, gold’s price has hit record highs on more than 30 separate occasions in 2025 and is having its best year since 1979.
On the other hand, Bitcoin continues to see a growing number of liquidations as investors move out of riskier cryptocurrencies.
BTC saw $1.5 billion U.S. in forced liquidations on Sept. 22, which means that some traders’ positions were automatically sold off as they couldn’t meet margin or collateral requirements.
Analysts say many institutional investors and hedge funds are starting to get more defensive with their portfolios amid fears that U.S. Federal Reserve rate cuts will fuel inflation in America.
Bitcoin’s price is up 20% on the year while gold’s price has gained 41% year-to-date.
