Is Bitcoin Really ‘Digital Gold’? What Gold’s Record Run Reveals After the Crypto Crash

The crypto market suffered a steep crash on Friday, erasing billions in value as Bitcoin (BTC) and other major assets plunged.

Yet, while digital assets were reeling, gold kept moving higher. The contrast has once again raised questions about whether Bitcoin can truly act as a reliable store of value or live up to its ‘digital gold’ reputation.

What Happened To The Crypto Market on October 10?

On October 10, the US President announced a 100% tariff on China, which caused a market freefall. The total crypto market cap dropped below $4 trillion to as low as $3.24 trillion.

At the same time, Bitcoin, which peaked at an all-time high (ATH) of over $126,000 on October 6, declined over 11% and hit $107,485. Ethereum (ETH) also fell more than 15%, losing its $4,000 support level.

Dubbed ‘Crypto Black Friday,’ the market turmoil triggered unprecedented liquidations. In just 24 hours, over $19 billion in leveraged positions vanished, liquidating 1.6 million traders—a new benchmark for volatility.

In a statement shared with BeInCrypto, Nic Puckrin, crypto analyst and co-founder of The Coin Bureau, described the weekend’s turmoil as ‘a brutal reminder’ of how fragile the crypto market is.

“As the crypto market grows and matures, the risks are amplified. The arrival of spot crypto ETFs and institutional interest has lulled investors into a false sense of security, but it remains the only market that trades after hours,” he said.

According to Puckrin, a mix of thin liquidity, excessive leverage, and the growing influence of large players created ‘a toxic cocktail’ that intensified the selloff. Still, the market did not stay down for too long.

BeInCrypto reported that Trump’s remarks easing tariff war fears yet again impacted the market, but this time positively. Bitcoin rose past the $115,000 mark, and ETH has also reclaimed the $4,000 level. Moreover, BeInCrypto Markets data showed that the broader market cap is more than 5% over the past day.

“Ironically, now that the dust has settled, many blue-chip tokens have seen a strong rebound – including Ethereum, which is looking particularly strong back above $4,000. As such, many spot investors find themselves in a similar position to where they were before the flash crash. This is certainly an argument against excessive leverage in a market with fluctuating liquidity in such an uncertain geopolitical climate,” Puckrin told BeInCrypto.

Puckrin added that the crash may have had a silver lining, as it flushed out excessive leverage and temporarily reset risk across the market. Still, he cautioned that Bitcoin faces a tough path ahead, needing to overcome key resistance levels before it can attempt a meaningful push toward a new all-time high this year.

Bitcoin, Gold, and the Evolving Safe Haven Question

As Bitcoin faced price swings, gold continued its ascent. In fact, the precious metal hit a new record high today. The metal’s steady rise amid geopolitical tensions and inflationary concerns has once again fueled debate over Bitcoin’s reputation as ‘digital gold.’

While gold’s performance emphasizes its traditional role as a safe haven, Bitcoin’s volatility and sensitivity to macroeconomic shocks raise questions about whether it can truly rival gold as a dependable store of value in times of crisis.

“Gold and risk assets, including Bitcoin, are up this evening. But while Bitcoin is just recovering part of Friday’s loss, gold is trading above $4,050, close to a new record high, as it had no Friday loss to recover. Silver is also near a new record high,” economist Peter Schiff highlighted.

Despite the contrasting performance, Puckrin stressed that gold’s rally is not without risks. According to the Coin Bureau co-founder, gold’s recent surge has taken on the character of a momentum trade that can lose steam quickly once sentiment shifts.

“While it’s very possible that gold will continue to outperform other assets for the foreseeable future, it has certainly become a crowded trade. And that means there is more risk involved in initiating exposure at this point,” he told BeInCrypto.

After a more than 50% rise in gold’s price this year, he suggested that investors’ focus could soon broaden to other assets offering similar hedging qualities. These may include other metals, commodities, tokenized real-world assets, and, importantly, Bitcoin, all of which remain comparatively undervalued against gold.

Puckrin added that these alternatives share gold’s appeal as protection against inflation, currency debasement, and political uncertainty.

“Gold’s record run is fuelling fresh price projections, with Goldman Sachs now expecting the shiny metal to reach $4,900 by next December…..Even if gold’s rally does continue unabated to Goldman Sachs’ 2026 year-end target, other assets are already playing catch-up. This shift may well become the dominant narrative for the remainder of 2025 as gold takes a breather,” he mentioned to BeInCrypto.

Thus, the ‘Crypto Black Friday’ exposed the market’s ongoing fragility amid global tensions. While Bitcoin has rebounded, its volatility continues to challenge its ‘digital gold’ narrative. Gold’s surge, meanwhile, shows that traditional safe havens still hold investors’ trust — at least for now.