**Bitcoin ETFs See $839 Million in Inflows While Gold ETFs Lose $4.1 Billion**
Gold’s shine is fading fast, just as its “digital” rival, Bitcoin (BTC), recovers lost ground.
Just a week after hitting a record high above $4,381, gold has retreated by more than 10.6%, plunging to as low as $3,915 on Thursday. This marks its steepest seven-day drop since April. Meanwhile, Bitcoin’s price surged nearly 6.7%, highlighting a sharp divergence between the two assets as the US and China edge closer to a trade agreement.
The shift came after Donald Trump’s remarks about an “amazing meeting” with Xi Jinping on Thursday, during which the two leaders agreed to reduce fentanyl tariffs from 20% to 10%, effective immediately. With risk appetite improving and crypto markets heating up, could gold’s correction below $4,000 support signal a rotation of traders back into Bitcoin in the coming months?
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### Bitcoin ETFs Attract $839 Million Amid Gold’s Plunge
US-listed Bitcoin ETFs have absorbed $839 million in net inflows since gold reached its record high on October 20. Holdings have risen consecutively over the last four sessions, according to data from Farside Investors.
In contrast, gold-backed ETFs experienced total outflows of about 1.064 million ounces—equivalent to nearly $4.1 billion—since October 22, per Bloomberg data. This includes the largest one-day withdrawal in over six months on Monday, when investors pulled out 0.448 million ounces of gold exposure.
BTC technicals now indicate a strong floor near $101,790. This level aligns with the 20-week exponential moving average (20-week EMA) and the 1.0 Fibonacci retracement level. Holding above this support confluence increases Bitcoin’s odds of hitting $150,000 by the end of the year.
JPMorgan analysts are optimistic, expecting BTC to reach $165,000 in 2025, arguing that it remains undervalued relative to gold.
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### Gold Hasn’t Peaked Yet: Analysts Weigh In
Gold remains up around 50% year-to-date, supported by record central-bank purchases, persistent fiscal imbalances, and the ongoing “debasement trade,” where investors seek protection amid ballooning government debt and weakening fiat currencies.
Metal trader David Bateman believes gold’s bull run remains fundamentally intact despite the recent correction. Technical indicators also show that gold is in a bull market correction, maintaining support above its 50-day exponential moving average (50-day EMA).
Over the past two years, gold has bounced off the 50-day EMA every time, resulting in rebounds ranging from 4% to 33%. Furthermore, the last three decades’ past 10% corrections in gold have consistently led to sharp rebounds within days, signaling these declines likely represent short-term bottoms rather than deeper downturns.
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### Historical Patterns Suggest an 8.3% Gold Rebound Ahead
Data highlighted by Sabu Trades notes that the previous ten instances of such steep gold drops resulted in positive returns over the following two months, averaging an 8.3% recovery.
If this pattern holds, gold could revisit the $4,200–$4,250 zone by December, effectively retesting its record highs and reaffirming its broader uptrend. Looking further ahead, gold could even approach HSBC’s $5,000 target in 2026, provided it stays above the 50-day EMA.
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### Conclusion
Bitcoin is currently holding strong above a critical technical support level and eyeing an ambitious target of $150,000 by year’s end. Meanwhile, gold, despite its recent setback, may be gearing up for a rebound according to historical trends and analyst expectations.
**Note:** This article does not contain investment advice or recommendations. Every investment and trading move involves risk. Readers should conduct their own research before making any decisions.
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