Bitcoin Reignites Its Correlation with Gold, Surging to $118,000

At the beginning of October 2025, Bitcoin (BTC) confirms its resurgence as “digital gold“. While the precious metal smashes its records at $3,895 an ounce, BTC soars and smashes through $118,000, rekindling a correlation that could well redefine global investment strategies. After months of divergence, the two assets finally move in concert… But why is this synchronization happening now, and what does it mean for the markets?

Bitcoin and Gold: a rediscovered correlation

Yesterday, October 1, 2025, Bitcoin broke through $118,000, driven by a bullish momentum sparked by gold, while gold itself reached a new all-time high of $3,895 per ounce.

Unlike previous years, when bitcoin often followed the Nasdaq, the current correlation with gold is strengthening as equity markets stall. We are thus witnessing a rotation of capital toward safe-haven assets, and bitcoin directly benefits from this, as Andre Dragosch, head of research at Bitwise, explains.

A trend confirmed by the charts: while the S&P 500 stagnates, bitcoin and gold show a marked positive correlation, as shown by the BTC/gold ratio, which is trying to break through a historic resistance.

Why does this bitcoin/gold correlation resurface?

Amid persistent inflation, geopolitical tensions, and distrust towards fiat currencies, investors turn to tangible or “digitalized” assets to preserve their capital. Moreover, bitcoin is no longer seen as a purely speculative asset but as a hedge against inflation, much like gold. Furthermore:

• Gold has gained 80% since 2020, while BTC increased 3.12% in 24 hours, with a market capitalization of $2.32 trillion;
• Short position liquidations on bitcoin exceeded $400 million in 24 hours, a sign of a market in full frenzy.

What does this dynamic mean for crypto investors?

If gold maintains its current levels, bitcoin could target $150,000 or even $200,000 by the end of 2025, according to the most optimistic analysts. Investors should then allocate a part of their portfolio to BTC and gold, allowing to hedge against depreciation of traditional currencies.

However, bitcoin remains much more volatile than gold and massive liquidations around $107,000–$108,000 remind us that sharp corrections are always possible. An equity market crash could trigger a brutal decoupling, with BTC falling back towards $80,000. Moreover, restrictions on physical gold (such as in China or Russia) could influence prices in the short term.

In 2025, the question is no longer gold or bitcoin, but how much to allocate to each? The two assets now seem complementary in a diversified portfolio. After an atypical and hopeful September, BTC represents today an opportunity to guard against monetary crises. And you, are you taking a position on gold, Bitcoin (BTC)… or both?