According to BlockBeats, and based on HTX market data, the price of Bitcoin fell below 120,000 USD on October 10, marking a 24-hour decline of 2.58%.
AI Summary
From the perspective of the cryptocurrency market, the fluctuations in gold prices are attributed to the volatile dynamics between traditional finance and emerging asset flows. While the drop in gold prices below 4000 USD, which is a daily decline of over 1%, represents a short-term technical correction, historical data indicates that its long-term upward trend remains intact. In particular, its rise from around 2700 USD in 2024 to over 4000 USD in 2025 confirms gold's strength as a traditional safe haven.
This volatility has complex effects on cryptocurrencies, especially assets like Bitcoin, which some consider 'digital gold.' On the other hand, strong gains in gold may temporarily attract some safe-haven funds from the cryptocurrency market, causing downward pressure on cryptocurrency asset prices. Conversely, high record levels of gold and subsequent corrections may prompt investors to reevaluate their asset allocations, potentially shifting some funds into digital assets like Bitcoin in search of higher risk-adjusted returns.
Regarding Federal Reserve policy, the record rise in gold following the interest rate cuts in September 2025 demonstrates the support that low interest rates provide for non-yielding gold. However, interest rate cuts may also boost risk appetite in the market, positively impacting the digital currency market. Therefore, gold and digital assets are not merely alternatives; they are in a state of dynamic equilibrium. A short-term decline in gold prices may create opportunities for capital rotation in the digital currency market, but in the long run, both are likely to benefit from global macroeconomic uncertainty and accommodative monetary policy.
Gold volatility also reflects the market's pricing of inflation and geopolitical risks. Cryptocurrency traders should closely monitor these traditional market signals, as they often influence global capital flows, and thus the liquidity of the digital currency market. If the current decline in gold prices continues, it may indicate a shift in risk appetite in the short term. However, given the significant gains gold has achieved since the beginning of the year, technical adjustments are normal. While the cryptocurrency market should be cautious of accompanying volatility, there is no need for excessive pessimism.
