- Bitcoin surged to nearly $113K as gold fell 5% and silver 8%.
- Analysts see rotation from metals into crypto as sentiment improves.
- BTC now eyes $115K–$120K if momentum persists above $110K.
Bitcoin broke free from weeks of sideways trading on Tuesday, jumping from below $108,000 to just shy of $113,000 in a sharp intraday rally. The move came as gold plunged 5% and silver fell nearly 8%, marking their steepest one-day declines in years. The reversal follows months of relentless precious metal gains driven by central bank easing, U.S.–China trade tensions, and broader liquidity stress — factors that had, until now, done little to lift crypto. But with metals finally cooling off, capital appears to be rotating into digital assets, giving Bitcoin its long-awaited breakout.
From Defensive Metals to Digital Risk
Analysts say the shift reflects a classic rotation of capital from defensive to growth-oriented assets. “BTC is catching the bid that gold just lost,” one trader summarized on X. Quinn Thomson, founder of Lekker Capital, recently predicted that Bitcoin would “catch up to gold’s rally once metals roll over.” That thesis appears to be unfolding, as Bitcoin’s technicals firmed up near $110K and liquidity began to thicken across spot exchanges. Meanwhile, Ether (ETH) also joined the rebound, erasing overnight losses to trade back above $4,000, suggesting improving sentiment across the majors.
Market Context and Reaction
The rally comes after Bitcoin had been locked in a tight range for weeks, struggling to attract fresh inflows even as macro tailwinds stacked up. Now, the combination of gold’s correction and short covering across crypto futures markets is fueling renewed momentum. On-chain data also shows upticks in active addresses and short-term holder accumulation — early signs of revived market participation. However, the rally hasn’t spread evenly across crypto stocks: miners like IREN, Hut 8, and Bitfarms slipped 3–4%, while Coinbase (COIN) fell 0.5%. Only Strategy (MSTR), Michael Saylor’s Bitcoin-heavy firm, managed a modest 1.7% gain.
What’s Next for Bitcoin
Traders are eyeing $113K–$115K as the next resistance zone, with a potential move toward $120K if momentum holds and gold continues to unwind. The key support to watch remains $108K, the level that caught last week’s lows. If BTC can stay above $110K through the weekly close, analysts say the macro narrative may be flipping in its favor — from lagging behind gold to leading risk assets again.
