Gold Just Had Its Worst Day in 12 Years — Will Bitcoin Benefit?

Gold prices are in a notable correction after hitting record highs. On October 21, the precious metal suffered its biggest one-day drop in more than 12 years.

Meanwhile, Bitcoin (BTC) has been gaining ground, sparking speculation from analysts that Capital may be shifting from gold to the top cryptocurrency.

Is the gold bull run over?

BeInCrypto previously reported that gold prices continued to rise this month. Even as the cryptocurrency market was hit by volatility due to tariffs following President Trump’s announcement, the traditional safe-haven asset continued to attract strong demand.

Indeed, long lines formed outside gold shops as investors rushed to buy physical gold. Amid the rush, gold prices hit a new record high of $4,381 per ounce on Monday.

However, as gold prices peaked, analysts warned of a potential market top and an upcoming correction. Their warnings proved timely.

Gold prices fell more than 6% on Tuesday, marking its biggest one-day drop since 2013. At the time of writing, gold was trading at $4,129 per ounce, down about 5% in the past 24 hours.

Professional trader Peter Brandt has taken notice of the sheer scale of the recent gold sell-off, noting that the metal's market Capital has fallen by an estimated $2.1 trillion in just one day.

“In terms of market Capital , gold’s decline today is equivalent to 55% of the value of all existing cryptocurrencies. @PeterSchiff’s ‘pet rock’ lost $2.1 trillion in value today. That’s $2,102 billion,” Brandt wrote .

What does gold's historic decline mean for Bitcoin?

Meanwhile, as gold struggles, Bitcoin gains momentum . Data from BeInCrypto Markets shows BTC has gained 0.51% over the past 24 hours.

At the time of writing, it is trading at $108,491. According to analyst Ash Crypto, these contrasting movements indicate that the Capital shift from gold to Bitcoin has begun.

Ash previously predicted that October could bring a short market decline before a strong rally in Q4, starting with 'parabolic candles likely to appear in the last 10 days of October.' According to him, the Q4 rally will push Bitcoin and altcoins to new highs. So, the current move could be the first sign that his prediction is starting to play out.

“Yesterday I told you it was time for a big shift from gold to bitcoin. Today the shift has begun,” Anthony Pompliano added .

Additionally, market research firm Swissblock notes that Bitcoin's rise as gold falls is not new — similar patterns have emerged before.

“In April, gold fell 5% in 3 days, right before Bitcoin broke out of its macro Dip and expanded, while gold consolidated. The investor shift into gold created patterns that defied textbooks (indices rose, and so did gold). Gold and BTC are moving in opposite directions, this decoupling could be the opportunity Bitcoin needs to end the year with a statement: Strong, Bitcoin-style. This could be the last chance,” the post reads .

Amid this backdrop, attention is once again focused on Bitcoin’s long-term potential relative to traditional assets. Previously, Binance founder CZ predicted that Bitcoin would eventually surpass gold .

“Prediction: Bitcoin will surpass gold. I don’t know exactly when. It may take a while, but it will happen,” CZ said .

While it may be too early to call this breakout, current market conditions are clearly in Bitcoin’s favor. If this momentum continues, the current shift could mark the beginning of a structural shift — one that will shape the next chapter in the long-running competition between gold and Bitcoin.