Key notes
- Bitcoin price rose 10% over 10 days, recovering to the $113,800 level as investor sentiment improved.
- Gold’s rally paused at $4,400, triggering $200 million in new Bitcoin deposits across DeFi platforms.
- Investors are rotating from gold to yielding BTC positions amid the ongoing trade conflict between the US and China.
The price of Bitcoin opened trading at $111,200 on Sunday in October before rising 2% to $113,800. Since gold’s historical price discovery phase paused at $4,380 on October 18, Bitcoin-Defi protocols have seen $400 million in new TVL deposits. The increased exposure to Bitcoin over the long term suggests that investors are now moving towards yielding Bitcoin positions.
Bitcoin recovers as Trump meets Xi Jinping
Bitcoin rebounded to 10-day highs near $114,000 on Sunday, with President Trump… Preparing for the meeting Chinese President Xi Jinping is in Korea to discuss trade relations. The meeting is set to be the culmination of Trump’s week-long visit to Asia, which included stops in Japan and Malaysia, where he oversaw the signing of a peace deal between Cambodia and Thailand, sparking optimism in global markets over the weekend.
In the past 10 days, Bitcoin has recovered nearly 10% of its mid-October losses, rising from $103,500 on October 17 to $113,800 at press time on Sunday, October 26.
Meanwhile, gold, which hit a record high of $4,381 per ounce on October 18, has seen a 6% decline from its peak, trading at $4,103 at press time.
Bitcoin price movement and its correlation with gold (XAU), October 26, 2025 | Source: Trading View
Bitcoin’s weekend rebound comes after a period of extreme volatility in mid-October. The cryptocurrency market has been rocked by President Trump’s now-delayed call for tariffs on China on October 10 and the prolonged US government shutdown that began on October 1.
Together, these events led to a sharp flight of capital into traditional safe-haven assets, triggering a $19.4 billion wave of liquidations in cryptocurrency derivatives markets – the largest single-day explosion on record.
Between October 10 and October 17, bitcoin fell 16% from $123,800 to $103,500, while gold rose 12% from $3,900 to $4,381 per ounce. According to TradingView data, Bitcoin’s correlation with gold fell to -0.84, the lowest level since February 2025, when tensions surrounding Trump’s tariffs on its North American neighbors, Mexico and Canada, destabilized the global market.
BTC TVL rises by $400 million in 10 days: Will gold give way to Bitcoin?
Since gold’s record rally stalled on October 17, investors have begun reallocating capital toward Bitcoin and other yield-generating digital assets. On-chain data shows that the total value of Bitcoin locked (TVL) in DeFi protocols rose from $7.8 billion to $8.2 billion between October 17 and October 26, an increase of almost $400 million in ten days.
Bitcoin TVL rose $400 million from $7.8 billion to $8.2 billion from October 17 to October 26 | Source: Artemis
When investors move Bitcoin to staking and lending protocols for on-chain returns, it signals renewed long-term confidence in Bitcoin, especially as the gold rally shows signs of exhaustion.
Lynn Alden: “Bitcoin is gold mixed with technology stocks.” pic.twitter.com/fF7zEYmgN8
— Bitcoin Archive (@BTC_Archive) October 25, 2025
Meanwhile, a prominent macro analyst Lynn Alden He downplayed gold’s impact on Bitcoin’s near-term price outlook, during an interview with YouTuber David Lean. When Alden was asked about the prospects for both assets, he noted that Bitcoin now competes more directly with stocks than with gold
Alden added that Bitcoin’s risk-adjusted return potential and proximity to the technology make it more attractive to portfolio managers than fixed hedging instruments like gold.
Bitcoin Price Forecast: Markets Await Trump-Xi Meeting and Fed Policy Decision
Looking ahead, global markets remain nervous as the US government shutdown enters its fourth week with little political solution in sight. Investor sentiment is likely to hinge on two major events this week: the Fed’s policy meeting on October 29 and the Trump-Xi Jinping summit scheduled for October 30.
US Federal Reserve Fund Rate Prospects for October 29, FOMC Meeting | Source: CME Fedwatch
Investors currently place a 96.2% chance on interest rates being cut again by 375 to 400 basis points, according to CME FedWatch.
If the talks yield positive trade signals or the Fed’s decision leans dovish as widely expected, Bitcoin may extend its upward trajectory towards the $115,000 to $118,000 range. However, renewed geopolitical frictions or tighter monetary tightening could lead to a near-term pullback towards the $109,000 support.
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to provide accurate and timely information but should not be considered financial or investment advice. Since market conditions can change rapidly, we encourage you to verify the information yourself and consult with a professional before making any decisions based on this content.
Ibrahim Ajibade is an experienced research analyst with a background in supporting several startups and financial institutions in the Web3 space. He has his undergraduate degree in Economics and is currently studying for a Masters in Blockchain and Distributed Ledger Technologies at the University of Malta.
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