Bitcoin Dips to $120K as Spot Gold Soars to Record Highs

Key Points

• Bitcoin’s price has fallen to around $121,000, a 3.75% drop from its all-time high of $126,000.
• Simultaneously, gold prices have surged to a record high of over $4,000 per ounce.

Bitcoin’s price has seen a decline, retreating to the $120,000 level. This represents a 2.22% drop in the past 24 hours, and a 3.75% decrease from its all-time high of $126,000 earlier this week.

The leading digital asset began cooling off after a strong rally that started in late September. Spot Bitcoin ETFs experienced the second-highest inflow since their launch in January 2024.

Bitcoin ETFs and Predictions

On October 6, these funds brought in a total of $1.19 billion in inflows, with BlackRock’s iShares Bitcoin Trust (IBIT) leading with $967 million. However, on October 7, the ETFs witnessed outflows totaling $23.81 million.

Economist Timothy Peterson has noted a 50% probability that Bitcoin could surpass $140,000 before the end of October, based on historical simulations using data from the past decade. His models, derived from hundreds of simulations using real Bitcoin price data since 2015, suggest that half of the month’s potential gains may have already occurred.

However, Peterson also highlighted a 43% chance that Bitcoin could close below $136,000, emphasizing the volatility that continues to define the crypto market. If Bitcoin were to follow its historical October pattern, it would need to gain approximately 14.7% from current levels to reach the $140,000 target.

Gold Prices Reach Record Highs

While Bitcoin has cooled, traditional safe-haven assets are rallying. Spot gold surged past $4,000 an ounce to reach an all-time high, trading at $4,017.16 per ounce as of the morning on Oct. 8. US gold futures for December delivery also rose to $4,040 per ounce. Gold’s performance in 2025 has been exceptional, up 53% year-to-date following a 27% increase in 2024.

Investors have increasingly turned to gold as a hedge against inflation and currency debasement, even as Bitcoin continues to mature as a digital alternative.

Bitcoin’s Fund Flow Ratio Indicates Weakening Selling Pressure

According to CryptoQuant, Bitcoin’s Fund Flow Ratio, which measures exchange-related activity relative to total transaction volume, has fallen to its lowest level since July 2023. This decline suggests that more Bitcoin is being transferred to private wallets for long-term storage, used in DeFi applications, or traded via Over-The-Counter (OTC) channels by institutions rather than being moved for liquidation. Such behavior typically precedes medium-term bullish reversals.