So gold became the main character again. The world is in a state of burning disorder right now. A new war breaks out every other day, central banks are adjusting rates like it’s nothing, and baby boomers are hoarding gold like it’s 2008. Add in a little inflation and a weak dollar, and boom, the price of gold is now $4,000.
Basically the world is now Golum and gold is its precious.
(Source: Tradingview)
What we are witnessing here is a domino effect taking hold.
The first domino fell with the Ukraine-Russia and Israel-Gaza wars which pushed investors into gold as a hedge against instability.
The slowdown in the job market and inflation in the United States led people to expect rate cuts from the Federal Reserve (FED), which made yielding assets such as bonds less attractive and boosted demand for non-yielding assets like gold.
The Bloomberg Dollar Spot Index just hit a new post-2022 low. The dollar continues to weaken following an FOMC statement that prioritized economic growth over inflation. pic.twitter.com/MZWH6be44J
-Lisa Abramowicz (@lisaabramowicz1) September 17, 2025
The third domino came in the form of a weaker US dollar, a typical consequence of rate cuts. This made gold cheaper for everyone to buy, as literally everything is based on US dollar denominations, which increased global demand. Every country put their skin in the game and started buying gold like their lives depended on it.
This chart, illustrating how central banks’ direct holdings of gold now exceed those of US Treasuries for the first time in around 30 years, is attracting considerable attention.#gold #centralbanks #markets #bonds pic.twitter.com/SVcFZzmdLu
– Mohamed A. El-Erian (@elerianm) August 31, 2025
And then, the final nail in the coffin. The U.S. government shutdown and concerns over central bank independence have sent gold prices soaring. And you know what? Everyone is still buying gold! It jumped 53% in 2025, leaving the Dow, S&P 500 and Nasdaq far behind. And there is still a long way to go!
Since the US government shutdown, the gold market has completely lost its luster and has continued to grow, without any significant technical setbacks. Market sentiment is currently buoyant, with bulls in full control, and even the 4,000 level has failed to reach effectively… pic.twitter.com/GapcMhhleW
– Allie—analyst (@XAUUSD__AILIE) October 8, 2025
Goldman Sachs predicts the price of gold will reach $4,900 per ounce by the end of 2026. JP Morgan forecasts it will average around $3,675 later in 2025 and approach $4,000 by mid-2026.
But what does this mean for crypto? Let’s discuss it.
Explore: Top 20 cryptocurrencies to buy in 2025
Digital gold (BTC) versus the real price of gold. Is the bull cycle over?
Now that the price of gold has surpassed $4,000, analysts are turning their attention to
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Bitcoin
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$123,444.82
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$53.05 billion
Price 7d
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. They predict that BTC could soon overtake the yellow metal. Henrik Andersson of Apollo Capital was quoted in a publication, in which he said the rally reflects a broader investor appetite for scarce assets.
He said: “Gold’s all-time high shows investor demand for rare assets. From here, we believe Bitcoin will be the better performing asset of the two.”
Justin of Anethanhead of partnerships at Arctic Digital, agrees with this sentiment, saying: “Gold hitting $4,000 is just another confirmation of the same dynamic of support for BTC. »
He described the move as “mutual confirmation” and said both assets respond similarly to macroeconomic pressures such as uncontrolled U.S. deficits, declining dollar credibility and increasing geopolitical risks.
He added: “Gold is familiar and deeply ingrained in traditional financial setups. Bitcoin is evolving because it is available 24/7, rarer and, admittedly, more future-oriented.”
Analysts like Ted Pillows and James Bull note that Bitcoin tends to follow gold’s movements with an 8-week lag, particularly during macro rallies due to its greater volatility and sensitivity to retail sentiment and ETF flows.
$BTC was strongly correlated to gold with an 8-week lag.
Right now, gold is hitting new highs, which means Bitcoin will do so next.
Perhaps we could see another correction, but overall, the fourth quarter will be important for Bitcoin. pic.twitter.com/RkOTTgsfG3
– Ted (@TedPillows) September 30, 2025
Gold has been the mainstay of the traditional financial system for years. It is generally more stable than Bitcoin, which can fluctuate more in the short term. But in 2025, the two assets climb together. Gold is up 50% this year and Bitcoin is up 33%. This highlights the case for Bitcoin as digital gold and also highlights that both assets respond similarly to economic forces.
EXPLORE: Best New Cryptocurrencies to Invest in in 2025
Tokenized Gold Breaks Out Amid Dollar Devaluation Fears
While the dollar is gradually losing its credibility, a new movement is taking shape on the blockchain: the rise of tokenized gold.
Over the past few months, investors have steadily invested in blockchain-based representations of physical gold, such as Tether Gold (XAUT) and Paxos Gold (PAXG). It’s a good way to protect against volatility while remaining within the digital ecosystem.
(Source: CoinGecko)
According to data from RWA.xyz, the number of crypto wallets containing tokenized gold increased by 53%. These tokens worth $3 billion are currently in circulation.
(Source: RWA.xyz)
Tether Gold, the largest player in this segment, increased its supply by 52%. Paxos Gold is not far behind with a 50% increase.
(Source: DéfiLlama)
These tokens are backed 1:1 by real bullion and offer the stability of gold with the flexibility of crypto. Because they live on the blockchain, people can use them on lending platforms or post them as collateral on DeFi without needing to go off-chain.
It also indicates a broader shift and appetite for RWA tokenization, where traditional stores of value are reinvented and brought on-chain for 24/7 markets.
EXPLORE: 9+ Best Memecoin to Buy in 2025
Key takeaways
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Global instability, rate cuts and dollar weakness triggered an explosive $4,000 breakout in gold.
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Bitcoin Could Follow Gold’s Lead As Analysts Predict Better Q4 Performance
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Tokenized gold booms as investors seek blockchain-based stable hedges against fiat depreciation
Gold Price Hits $4,000 ATH, Leaving Nasdaq in the Dust – Is the Bull Cycle Toast? appeared first on 99Bitcoins.
