Within just days of gold setting records, the precious metal went through a correction. Shares of gold mining companies plummeted, while BTC regained over 8% of its price against gold.
Gold showed its volatile side after dipping to $4,101.07. The precious metal was among the top gainers for 2025, in what looked like a price discovery rally. However, the nominal price of gold for now only reflected the increased money supply, in addition to the overall market hype for the ‘debasement trade.’
As a proxy metric, the Van Eck Gold Miners ETF extended the day’s losses to over 9.4%. The day’s dip is the worst performance for the ETF since the pandemic shock in March 2020.
As gold moved down from the $4,300 range and stopped producing new daily records, gold mining shares also took a downturn.
Gold mining companies lost over 9% for the past day
Other leading miners also suffered deep daily losses. Barrick Mining Corp. (NYSE: B) is down 9.10% for the day to $31.57. Newmont Corp (NEM) fell by 9.10% to $86.11. Agnico Eagle Mines (AEM) fell by 9.59% to $161.39. The shares all took a downturn following recent six-month highs, tracking gold’s performance.
Smaller gold mining companies also suffered a wide range of daily losses following the slide in bullion prices.
Gold was only one of the day’s losers. Silver also broke its trend, sinking to $49.33 per ounce and shrinking this year’s gains to 41.8%, down from over 60%. As Cryptopolitan reported earlier, gold and silver crashed on profit-taking, following a rally not seen in decades.
Gold buyers are facing a recovering US dollar, as the dollar index started inching up since October 16. The general hype for bullion gold also dissipated after the asset hit a recent peak at $4,381.52.
BTC regains its strength against gold
The sudden slide in gold prices boosted the strength of BTC against the precious metal. BTC gained up to 8.1% in terms of gold ounces, bouncing after a year of sliding against gold.
The recent gold crash coincided with a rapid BTC recovery. BTC rallied to $112,519, after briefly rising above $113,000 on a short squeeze.
BTC remained the year’s top gainer, retaining 68.1% in net gains. BTC remains more volatile compared to gold, but it has also shown that precious metals can still have overbought rallies and go through corrections.
Despite this, the prediction market on whether BTC will outperform gold in 2025 is still undecided, giving only 25% probability on Polymarket.
The rapid collapse of gold is sparking hopes of redistributing liquidity, which may flow back into BTC and selected crypto tokens. Historically, BTC has started some of its significant rallies following the peak in gold prices.
Tokenized gold also took a step back, including PAXG, which briefly traded at a premium to spot gold, the equivalent of over $5,000 per ounce.
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