Bitcoin Traders Face $1.8 Billion Liquidations as Gold Soars
Bitcoin traders are experiencing a tough time, with $1.8 billion in liquidations. Meanwhile, gold is hitting new highs.
Shawn Young,Chief Analyst at MEXC Research,points out that this selloff highlights crypto’s fragility. Over 407,000 traders faced liquidations as Bitcoin prices dipped below $112,000.
Gold and Bitcoin are moving in opposite directions. Gold reached a record high of $3,790 per ounce on September 23. In contrast, Bitcoin has been declining over the past week.
The $1.8 billion liquidation wave for Bitcoin traders includes $1.65 billion in long positions. This divergence challenges the idea that Bitcoin can hedge against macro risks.
Young explains that the U.S. dollar’s strength after the Fed’s rate cut has caught markets off guard. This, combined with high Treasury yields and looming inflation data, has kept crypto markets defensive.
Farzam ehsani, CEO and co-founder of VALR, believes that gold’s entrenched position as a hedge against geopolitical risks has favored gold more in 2025. Gold has surged 42.7% this year, while Bitcoin has returned just 20.7%, despite regulatory and institutional tailwinds.
When the dollar is strong, Bitcoin struggles to fulfill its ‘digital gold’ role. Ehsani notes that the sharp divergence between gold and Bitcoin reflects shifting priorities. Gold has surged due to central bank accumulation and its entrenched status as a geopolitical hedge, while Bitcoin remains in early stages of institutional uptake.
