Bitcoin is catching a bid on Tuesday as the record rally in precious metals reverses in a big way.
Gold saw a 5% decline to $4,130, its biggest daily drawdown in years. Silver also tumbled nearly 8%. The metals had surged over the past few months fueled by central banks moving into monetary easing mode, trade tensions between the U.S. and China, and signs of liquidity and credit stress in the financial system. Frustratingly to bitcoin bulls, though, those catalysts had provided little boost to the world’s largest crypto, which — with a couple of brief exceptions — has remained stuck in a tight range for months.
Bitcoin, having slumped below $108,000 overnight, rebounded to $112,700 at press time, gaining 1% over the past 24 hours. Ether also erased its overnight decline, bouncing back above $4,000 but 2.4% lower during the same period.
Quinn Thomson, founder of hedge fund Lekker Capital, said last week that BTC is poised to catch up to gold’s rally. Charlie Morris, CIO of ByteTree, also argued that bitcoin’s time to rally will come when gold rolls over to consolidate.
Read more: Bitcoin’s October Slowdown Masks Strength, Analysts Predict Catch-Up With Gold