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Bitcoin has rebounded from a weekend “flash crash” that caused a $500 billion crypto market meltdown and a serious BlackRock warning.
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The bitcoin price, which briefly plunged to almost $100,000 per bitcoin from a peak of $126,000 earlier in the week, has climbed back to around $114,000 ahead of a “perfect storm” some see on the horizon.
Now, amid a “cascade” bitcoin price warning, the price of gold has surged to a fresh all-time high — something that could mean further volatility for the bitcoin price and crypto market.
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“Stock markets, cryptocurrencies and the oil price are all regaining some ground after Friday’s rout, but gold and silver continue to power higher, even as president Trump offers soothing words about the hoped-for summit between China and the U.S., to suggest that someone, somewhere is still feeling nervous,” AJ Bell investment director Russ Mould said in emailed comments.
After U.S. president Donald Trump reignited the U.S.-China trade war with threats of 100% tariffs on China’s goods coming into the U.S. on Friday, he has tried to defuse the situation, posting that Truth Social that “it will all be fine.”
Trade tensions remain a focus for markets, with UBS analyst Giovanni Staunovo telling Reuters that “while they have eased again between the U.S. and China, the 100% additional tariff threat remains.”
While bitcoin is sometimes called “digital gold” due to its limited supply, it continues to trade more like a high-growth technology stock, with traders abandoning it in favour of gold in times of uncertainty.
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“Gold and silver surged to new all-time highs as investors added to their exposure,” David Morrison, senior market analyst at Trade Nation, said in emailed comments.
“The rally in both metals currently seems relentless, as recent gains have now extended over multiple sessions and show little sign of fatigue despite being considered extremely overbought. It appears that every event only increases the appeal of both gold and silver. Certainly, president Trump’s fresh tariff threat increased demand, while prices rose again after he toned down his attack over the weekend. Could this be evidence of a blow-off top? Maybe. So far there has been no significant pullback, which forces traders who feel underweight in the two metals to pay up, even as they trade at record levels.”
After gold hit a fresh all-time high of almost $4,100 per ounce, Bank of America raised its 2026 outlook for gold to $5,000.
