Crypto's Ups and Downs: Why Investors Are Turning to Gold
Over the past 10 days, the total value of stablecoins has dropped by $2.24 billion. This could indicate that investors are pulling their money out of the crypto world and putting it into safer options like gold and silver. This shift might slow down the recovery of the crypto market.
Investors Seek Safety
Investors seem to be choosing safety over risk. When things feel uncertain, people often move their money into assets that hold value during tough economic times, like gold and silver, instead of risky investments like crypto.
Bitcoin's Recent Struggles
- Bitcoin was doing well until October 10, 2025.
- On that day, over $19 billion worth of leveraged crypto positions were wiped out.
- Bitcoin dropped from about $121,500 to below $103,000 in just one day.
- Since then, Bitcoin has fallen even further to $88,080.
Precious Metals Soar
- Gold has soared more than 20% to break the $5,000 barrier.
- Silver has more than doubled in market value.
Tether's Gold Purchases
Tether, a big stablecoin issuer, has been buying a lot of gold recently. In the fourth quarter of 2025 alone, Tether bought 27 metric tons of gold worth $4.4 billion.
Path to Recovery
For the crypto market to recover, the value of stablecoins needs to stop falling and start rising again. This would signal that new money is coming into the ecosystem and that investors are feeling more confident. Until then, smaller and riskier crypto assets, known as altcoins, will continue to struggle more than Bitcoin.
Bitcoin's Resilience
Bitcoin usually holds up better than altcoins in these situations, but the reduced supply of stablecoins still limits the upside across the market. Investors need to see stablecoin growth before they can feel confident about putting their money back into crypto.
