Bitcoin and gold are once again moving in opposite directions. While gold surged to a record high near $3,790 per ounce on September 23, Bitcoin slipped below $112,000, triggering a massive wave of trader liquidations.
Bitcoin Selloff: $1.8B in Liquidations
According to data from CoinGlass, nearly $1.8 billion worth of positions were liquidated across the Bitcoin market, with $1.65 billion coming from long positions. In total, about 407,000 traders were impacted by the selloff.
Shawn Young, Chief Analyst at MEXC Research, described the event as a stark reminder of crypto’s vulnerabilities.
“The U.S. dollar regained strength after the Fed’s rate cut, catching markets off guard. That strengthened dollar, combined with high Treasury yields and looming inflation data, has kept crypto markets defensive,” he told crypto.news.
Diverging Paths: Gold vs. Bitcoin
While Bitcoin struggled, gold thrived. Analysts point to gold’s entrenched role as a hedge against geopolitical and macroeconomic risks, compared to Bitcoin’s still-developing institutional reputation.
Farzam Ehsani, CEO and co-founder of VALR, explained:
“The sharp divergence between gold and Bitcoin reflects shifting priorities. Gold has surged due to central bank accumulation and its entrenched status as a geopolitical hedge, while Bitcoin remains in early stages of institutional uptake.”
Gold has been one of the best-performing assets of 2025, rising 42.7% year-to-date, according to StatMuse. Bitcoin, by contrast, has gained 20.7% over the same period, despite regulatory clarity and growing institutional adoption.
Bigger Picture
The latest market action highlights Bitcoin’s ongoing struggle to fully live up to its “digital gold” narrative. While gold remains the go-to safe haven during periods of macro uncertainty, Bitcoin continues to face volatility amplified by leverage and speculative positioning.
For traders, the $1.8B liquidation wave serves as a reminder: in crypto markets, structural fragility and sudden swings remain a part of the game.
