Why Bitcoin Price Crash Deepen While Gold Rises, Stocks Recover?

Bitcoin Price Crash: Gold XAUUSD Rises Over 20% and Stocks Rebound

Over the past three months, global markets have started to move in very different directions. Gold prices have climbed 21%, the S&P 500 index is up 7%, while Bitcoin has dropped 15%, marking a clear break from the tight link these assets shared for the past few years. 

Source: X (formerly Twitter) 

The shift has left many investors wondering what’s really driving this change and why the ongoing Bitcoin price crash looks different this time.

Bitcoin Drops as Investors Take Profits

Bitcoin has been under heavy selling pressure lately. 

The price is now around $103,863, down nearly 10% this month after slipping from a high near $111,000. Trading volume has surged by almost 15% in just one day, showing how nervous traders are. 

Source: CMC

Many analysts believe we’re now in a “profit-taking phase,” where big investors and institutions are locking in gains from earlier in the year.

Recent data also shows more than $1.2 billion in BTC ETF outflows this week, suggesting that large investors are cutting exposure. 

According to Morgan Stanley, BTC could be entering the “harvest phase” of its four-year cycle, a period that usually comes before a pullback. 

Technical Pressure Adds to the Decline

Technically, the price of Bitcoin recently broke below its 365-day moving average, currently around $105K, which is usually an indicator of deeper corrections. 

It is trading beneath both the 30-day and 200-day moving averages, which indicates a sharp bearish trend. If it fails to close above $105K shortly, it might test the support level at $100K, a key psychological level being closely watched by traders.

In addition, over $412 million worth of crypto positions have been liquidated in the last 24 hours, with BTC traders accounting for the lion's share of those losses. The Fear & Greed Index is sliding down to 26, indicative of extreme fear in the market.

Gold Shines as a Safe Haven

While BTC struggles, Gold has been among the best performing assets of late 2025. BTC Prices are up 21% since August as investors seek safer assets amid global uncertainty.

Source: X (formerly Twitter) 

XAUUSD price is trading around $4,120, and for as long as the price remains above the $4,080–$4,075 support zone, the broader outlook remains bullish.

It is expected to see more upside momentum when a break is made above the $4,150 level, analysts say. Traders are advised to remain cautious, implement stop-loss orders, and seek buying opportunities around lower levels.

Stocks Show Signs of Recovery

Meanwhile, the stock market has been regaining its lost ground. The S&P 500 is up some 7% in the last three months, as Dow Futures and Nasdaq Futures also continue to rise. The S&P 500 closed at 6,846.61, up 0.21% on the day, reflecting the growing optimism among equity investors.

After months of turbulence, traders seem more confident in the economic outlook. 

The green across the board in U.S. indexes is evidence that investors are turning their cash away from high-risk assets like crypto into more sustainable investments such as equities and commodities.

Is Bitcoin Ready to Bounce Back?

So, this now leaves Bitcoin in a very tricky position. Bitcoin price prediction suggests, If the price can manage to hold above $100K, it might find some short-term stability. But failing to reclaim $105K could lead to deeper losses. Many traders are watching this level closely before making any new moves.

In other words, gold is lustrous, stocks are rebounding, and Bitcoin is trying to steady itself.