The Great Capital Rotation: Is a Wave of Money About to Flow into Crypto?

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The crypto market is stabilizing after last week’s mass liquidation event. However, Bitcoin and altcoins have been unable to recover from local lows. While things were more tame for cryptocurrencies, Gold and Silver each sank more than 6% this week, pointing to a potential near-term top in precious metals. With Gold’s seemingly unstoppable rally finally faltering, all eyes are on Bitcoin and alts to watch and see if they benefit from Gold investors taking profit and rotating it into riskier, yet hard, assets.

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Gold Standard

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Gold has surpassed the performance of most assets in 2025. But that overperformance could be coming to an end – or already has. After adding to its over 65% ROI for 2025, Gold lost 6% of its value in the worst day the precious metal has had since 2013.

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Gold fell a historic 6% in one day

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At peak prices, Gold’s market cap reached $30 trillion. A 6% drop is around $1.8 trillion in market cap. That’s not far off from Bitcoin’s $2.25 trillion market cap, and about half of the entire total cryptocurrency market cap with BTC included. Should Gold fall further, and a fraction of that capital rotates into riskier assets like cryptocurrencies, it could have a dramatic impact on price appreciation. 

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Hard Assets

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Global risk appetite has been changing, favoring assets with finite supplies and moving away from ever-expanding fiat currencies. Gold and Silver rallying is a sign that fear is driving financial market behavior. This secular shift happens every few decades, where investors begin to show preference toward hard assets versus soft assets. The S&P500/Gold ratio shows this change in trend, but such a shift has never occurred during Bitcoin’s existence.

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The S&P500/Gold ratio shows a shift towards hard assets

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Bitcoin is considered to be a hard asset due to its limited supply of 21 million BTC. Many altcoins share similar attributes, such as Litecoin, that make them more commodity-like. However, cryptocurrencies have only been around less than two decades and still haven’t been time-tested and proven like precious metals have. We will soon find out if the market views crypto as a hard asset, or if it remains weak like the stock market and other soft assets.

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Altcoin Alert

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The cryptocurrency market continues to find its footing after the record-breaking shakeup we saw weeks ago. Despite a clear reluctance from buyers, a few coins stood out and posted strong gains. Chainlink (LINK), for example, saw a 10% intraday rally on the news that Chainlink’s Sergey Nazarov would open a roundtable discussion along with participants from BlackRock, JPMorgan, Circle, Coinbase, and more.

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ZCash is up over 250% in October alone

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ZCash (ZEC), is another coin that has caught the attention of crypto investors. ZCash is up over 7% this week, adding to its over 250% gain in October. ZCash is affectionately referred to as a “Dino coin,” alongside altcoins like Litecoin (LTC) and Monero (XMR). All three of these cryptocurrencies feature a privacy element, among other features. Investors are watching for breakouts in similarly-categorized coins for a repeat performance.

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Ethereum Forecast

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Last night, it was revealed that cryptocurrency influencer “Cobie” sold an NFT on-chain for $25 million in USDC. The development could reignite the interest in NFTs and that has the potential to drive increased activity in Ethereum. 

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Is Ethereum ready for a 2021-style rally?

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ETH was one of the handful of altcoins that was mostly unaffected by the mass liquidation event weeks ago. Since then, it has been holding support above a key level. In the chart above, we can see that the Tenkan-sen and Kijun-sen have fused together. If they begin to rise together, as they did in late 2020, we could see a similar surge in the price of Ether into early 2026.

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Conclusion

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Currently, Bitcoin is holding firm near key cyclical support, while the broader crypto market searches for direction. If the narrative does shift from Gold dominance to crypto ascendance, the implications could be transformative. Even a 1% rotation from gold into digital assets would inject hundreds of billions of dollars into the crypto market—a catalyst powerful enough to send Bitcoin and top altcoins into price discovery.

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Whether this marks the beginning of The Great Capital Rotation remains to be seen. But one thing is becoming clear: the question is no longer if crypto will be considered alongside Gold as a premier hard asset, but how soon it will begin absorbing meaningful capital flows. A new secular shift may already be underway—one where digital assets don’t just coexist with traditional stores of value, but potentially outperform them in the years ahead.

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Is crypto about to take the mantle from gold as the world’s preferred hard asset? The answer may define the next multi-trillion-dollar trend. Trade top cryptocurrencies at YouHolder today.

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