Will Bitcoin Follow Gold’s Rise? – Market Info

The cryptocurrency market has slightly declined over the past two weeks. The total cryptocurrency market capitalization fell by 2% and currently stands at around €3.32 trillion. Bitcoin’s market dominance slightly increased, reaching 58.6%.

With the decline in total market capitalization, the Fear & Greed Index also dropped to 43/100, entering the “fear” zone. The Altcoin Season Index fell to 73/100.

Will Bitcoin Follow Gold’s Rise?

The price of Bitcoin is often compared to the performance of gold — both assets are characterized by cyclical surges followed by corrections, with Bitcoin frequently referred to as digital gold. Currently, gold is experiencing strong growth, which some analysts see as a pattern Bitcoin could follow. One ambitious estimate suggests that BTC could reach $150,000 by the end of 2025 if its trajectory aligns with gold’s momentum.

Gold has historically grown similarly to Bitcoin, with the last three years being particularly successful — from around $1,627 in 2022, gold reached a new all-time high of $3,765 per ounce this past Tuesday. This jump represents an increase of over 130% in three years.

The massive growth in gold prices over recent years, and especially in the past few weeks, raises the question: will Bitcoin follow this growth? In the past, Bitcoin has experienced similar waves — after significant growth came a correction, followed by new growth — supporting the hypothesis of a shared cycle with gold.

However, it’s not just a matter of copying gold’s trajectory. Bitcoin still faces challenges that gold does not — higher volatility, regulatory risks, network limitations, or shifts in investor sentiment. Experts warn that a correction could precede significant growth, but if Bitcoin continues to correlate with gold, it could reach new highs in the near term.

Equally important is liquidity and institutional involvement. If major players begin shifting capital from traditional assets into cryptocurrencies — just as they diversify with gold funds today — Bitcoin could benefit significantly. Maintaining a growth trend with relatively stable volatility could greatly increase confidence among both new and experienced investors.

Currently, Bitcoin’s market capitalization is only about 8.8% of gold’s market capitalization. For Bitcoin to be even half as large as gold in terms of market cap, its market capitalization would need to rise to $12.75 trillion at the current gold price — which would imply that one Bitcoin would need to trade above $503,000. Source

Institutions Are Accumulating at Rocket Speed

The Bitcoin market has seen a significant inflow of institutional capital in recent weeks, suggesting that major players are regaining control of the cryptocurrency market. While retail investors remain mostly passive or follow short-term price movements, companies with huge cash reserves are making decisive moves toward long-term accumulation of the largest and most well-known cryptocurrency.

One of the most notable examples is the Japanese firm Metaplanet, which this week announced the purchase of 5,419 BTC worth approximately $632 million. This purchase increased its total holdings to 25,555 BTC, making it one of the largest corporate Bitcoin holders in Asia. Such massive accumulation is clear evidence that Bitcoin is seen as a strategic hedge against currency fluctuations and inflation.

Another important player is Strive, which, after merging with Semler Scientific, increased its reserves to over 10,900 BTC. Semler Scientific alone added 5,816 BTC, a volume that significantly boosts the company’s exposure to Bitcoin in a short period. This move confirms that firms with strong capital bases are seeking digital assets not only for diversification but also as an alternative source of long-term growth.

Strategy, long known for its BTC strategy, is also active. This week, it announced another purchase worth $99 million, reaffirming its long-term vision that Bitcoin is the digital gold of the future. Strategy systematically positions itself as a corporation that not only accumulates but also influences market trends through its actions.

A surprise on the market was the purchase by OranjeBTC, which added 3,650 Bitcoins to its portfolio. Although smaller than giants like Metaplanet or Strategy, this move drew attention because the company had previously been more conservative. Its decision to enter the market at this scale shows that confidence in Bitcoin’s long-term potential is spreading beyond the largest investors. This signal may encourage other companies to adopt similar strategies and gradually increase their exposure to digital assets.

The collective actions of these companies send a clear message: Bitcoin is becoming an established asset that institutions do not see as experimental but as a fundamental part of their financial strategies. Retail investors may react to daily volatility, but the long-term direction is increasingly determined by companies with billion-dollar budgets willing to hold BTC for years. Massive purchases by Metaplanet, Strive, Semler Scientific, and Strategy reinforce the belief that Bitcoin is moving firmly into the category of full-fledged reserve assets, with its future largely shaped by institutional capital. Source

Illiquid BTC Holdings Hit a New High

Illiquid Bitcoin holdings — coins held long-term without being moved to exchanges or circulation — have reached a historic record of 14.3 million BTC. This volume represents over 72% of all available Bitcoin, signaling a strong trend toward accumulation and reduced free supply in the market.

Since the beginning of the year, the number of BTC in an illiquid state has increased by over 422,000 coins, clearly showing that investors prefer holding rather than selling. This shift confirms growing confidence in Bitcoin as a long-term reserve asset capable of preserving value during economic uncertainty.

Major players, so-called “whales” and “sharks,” play a significant role, absorbing new Bitcoin emissions at a very high rate. It is estimated that they are currently buying roughly three times the annual production of new coins, meaning freshly mined BTC is going to the wallets of wealthy investors rather than the market.

This trend is also reflected in record outflows from exchanges. More and more investors are moving their Bitcoins into long-term custody, further reducing liquidity on trading platforms. Reduced selling pressure creates a favorable environment for price growth, as fewer coins are available for sale.

The combination of rising illiquidity and continued institutional and retail accumulation is changing the market’s fundamental dynamics. Supply is contracting while demand remains strong, creating upward pressure on Bitcoin’s value. If this trend continues, the market could enter a new phase where price is primarily determined by long-term investor confidence and gradually decreasing available supply. Source

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CFTC Considers Allowing Stablecoins as Collateral on Derivatives Markets

The U.S. regulatory agency CFTC (Commodity Futures Trading Commission) is considering a major change in the operation of derivatives markets — allowing stablecoins and tokenized assets to serve as collateral for trading derivatives. Its officials emphasize that this could bring the crypto world closer to traditional finance and create a new level of interconnection.

Currently, derivative contracts are mostly collateralized in cash or government bonds. But with increasing pressure on digital assets and tokenization, there is a growing need for a broader range of collateral that is available 24/7 and operates globally. Here, stablecoins like USDC, USDT, or other tokenized forms of financial instruments could become a fully-fledged alternative to money traditionally accepted as collateral.

CFTC Director Caroline Pham called on the public to participate and submit feedback on the proposed model by October 20. The goal is to establish clear rules for collateral valuation, custody, reserve management, and operational processes. Several crypto companies already support this move — including Circle, Tether, Ripple, and exchanges — seeing it as an opportunity to reduce costs, increase liquidity, and connect traditional and digital financial markets.

Legal frameworks for stablecoins in the U.S. are gradually taking shape. The GENIUS Act, already approved, sets rules for issuing stablecoins as means of payment. If complemented by derivatives market regulation, this could openly change the standards for trade collateral. Crypto firms believe this step would “unlock” liquidity and enable 24/7 trading without the need for fiat conversion.

This initiative is part of a broader CFTC plan, linking new technological pilot programs, executive group recommendations, and professional forums. If implemented, stablecoins could move from a supplementary payment layer to the centerpiece of trade collateral on derivatives markets, changing the architecture of capital flows between cryptocurrencies and the traditional financial ecosystem. Source

Democrats Signal Support for a Crypto Asset Bill

A group of twelve Democratic senators in the U.S. Congress has expressed willingness to cooperate with Republicans to create a legislative framework for digital assets. This step suggests the possibility of bipartisan support for a proposed bill that would establish rules for the cryptocurrency market.

Democrats are proposing measures to combat illegal financing and prevent market abuse. They also aim to address regulatory gaps in the spot market for digital assets not considered securities. These proposals are part of a broader effort to create a comprehensive and balanced approach to crypto regulation.

Republicans, who hold the majority in both chambers of Congress, plan to introduce the Responsible Financial Innovation Act. It is expected to be submitted soon for a vote in the Senate Banking Committee. If approved, it could be presented to the full chamber for passage before the end of the year.

This development indicates a growing consensus among lawmakers on the need for clear and effective rules for the digital asset market. Bipartisan collaboration could lead to legislation providing legal certainty for investors and supporting further cryptocurrency development in the United States. Source

BitMine Now Holds 2% of All ETH

BitMine Immersion Technologies, known for its aggressive ETH accumulation strategy, has reached a major milestone — according to the latest data, it owns more than 2.4 million ETH, roughly 2% of the total ETH supply. At the current market price, this amounts to around $10 billion.

This move is part of the company’s long-term strategy to reach a 5% share of total ETH supply, which would represent about 6 million ETH. BitMine is currently on track, owning more than 40% of all ETH accumulated by institutional investors this year.

In addition to ETH accumulation, the company announced a successful direct public offering of shares worth $365 million, with the BMNR share price set at $70 each. The offering also includes options allowing investors to purchase additional shares at $87.50 by March 2027. If fully exercised, the company could raise another $913 million.

Chairman Tom Lee expressed confidence that the growing shift of Wall Street and AI technologies to blockchain will transform the current financial system, with much of this transformation happening on the Ethereum platform.

Despite positive ETH accumulation news, BitMine’s stock (BMNR) fell 10% on Monday due to a drop in ETH price. However, since the beginning of ETH accumulation in June, the stock has risen more than 1,200%, indicating strong growth potential for the company in the market. Source

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