The World’s Rushing to Gold—But Bitcoin May Be the Real Winner

Gold prices climbed to another record high, extending the October rally that has made the precious metal the first asset in history to reach a $30 trillion market cap.

At the same time, Bitcoin, often dubbed “digital gold,” continued its decline, dropping more than 5% over the past 24 hours. Still, analysts suggest that the trend may soon reverse as gold approaches what could be a market peak.

Will Gold Prices Drop as the Market Enters a Euphoria Phase? 

Market data showed that gold climbed to a record $4,380 per ounce today, reflecting heightened demand amid persistent inflation and global economic uncertainties. The surge has drawn retail investors en masse, with reports of long queues forming outside bullion dealers worldwide.

Scene at BullionStar before Opening Hours – Customers already lining up to buy Gold & Silver. pic.twitter.com/UVyqLoWMXR

— BullionStar (@BullionStar) October 17, 2025

Yet, the rally has sparked cautions of an impending market top. Analyst bishara described scenes of physical gold buyers at new highs as a “macro top” signal.

“GOLD Yeah, this will top at any time. It’s clearly a blow off top,” another analyst added.

From a technical perspective, Michaël van de Poppe likened the current chart to gold’s 1979-1980 bull run, during which the prices fell sharply after a peak. He noted that the market is in a euphoric stage, when excitement and fear of missing out (FOMO) drive prices unsustainably high.

“Gold has now reached the euphoria Phase. It should make a local top within 2 weeks around 29th Oct FOMC,” Ash Crypto forecasted.

Analysts Say Bitcoin Could Be the Next Big Winner as Gold’s Rally Peaks

As talk of a market top grows louder, several analysts agree that Bitcoin could emerge as the main beneficiary once gold’s momentum fades. Poppe explained that gold’s overheated environment could set the stage for a shift in capital flows toward Bitcoin, which he views as significantly undervalued compared to gold.

Meanwhile, Ash Crypto sees the current setup preceding the ‘biggest bull run’ as trillions enter the crypto market. He also pointed to BTC’s correlation with gold, noting that the former will soon follow the latter.

“Bitcoin will follow gold soon. $150,000-$180,000 is coming in Q4,” the analyst stated.

Usually around 90 days between the start of a gold move and the start of a Bitcoin move. We're around 60 days into the gold move right now. pic.twitter.com/l2twtDXuBH

— Gammichan (@gammichan) October 15, 2025

Merlijn The Trader observed that the global M2 money supply — a key indicator of liquidity — has been climbing sharply, coinciding with gold’s surge to record highs. Bitcoin, however, has remained largely stagnant in recent weeks. 

Historically, when central banks inject liquidity into the financial system, capital often flows toward riskier assets such as cryptocurrencies. Merlijn suggested that this pattern could soon repeat, with Bitcoin poised to “catch up” to gold’s rally as excess liquidity drives investors back into higher-risk markets.

“This divergence never lasts. Liquidity always finds risk. The catch-up rally will be brutal,” he remarked.

Yet, not everyone is convinced. Some skeptics, such as economist Peter Schiff, claim Bitcoin’s inability to overtake gold raises questions about its reputation as “digital gold.” 

“Gold is eating Bitcoin’s lunch. Bitcoin is now down 32% priced in gold since its August high. This Bitcoin bear market will be brutal. HODLers, sell your fool’s gold now and buy the real thing, or have fun going broke,” he commented.

Schiff argued that the current global trend away from the dollar isn’t driving demand for Bitcoin but for gold, highlighting its weakness as a real alternative currency or store of value.

“It’s not just a de-dollarization trade but a de-bitcoinization trade,” the economist said.

As both assets move in the opposite direction for now, the coming months will reveal whether Bitcoin can mirror gold’s explosive rallies or if their performance gap grows wider.