Sep 22, 2025
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Gold Hits Record High as Bitcoin Falls, Indicating Profit Rotation
- Gold increased by 1% on Monday, reaching a record high of $3,721, with a 2025 gain of 43%.
- Bitcoin dropped 3% in 24 hours to $112,000, reducing its year-to-date gain to 17%. Profit rotation from Bitcoin to gold may have occurred.
- Gold and Bitcoin typically do not move together, but recent trends show stronger divergence.
- Silver rose by 1.5% on Monday, nearing $44, marking a more than 50% increase this year.
- The Federal Reserve's rate cut on Sept. 17 has led to a 1% rise in both gold and the S&P 500.
- U.S. treasury yields increased, with the 10-year at 4.125% (up 2.5%) and the 30-year at 4.7% (up 2%).
- The dollar strengthened, with the DXY index increasing by 1% to 97.5, exerting pressure on risk assets like Bitcoin, which fell over 3.5% since the Fed's rate cut.
