The post Is Bitcoin a Real Threat to Gold? appeared on BitcoinEthereumNews.com.

August put a small dent in what remains a longer-term uptrend for digital assets. Bitcoin fell about 6.5% — its first monthly decline since March — after briefly touching a new all-time high of $125,000 mid-month. Ether, by contrast, extended its strong run, gaining nearly 19% and lifting its share of overall market capitalization to roughly 13%. This rotation from bitcoin into ether was also visible in ETFs: bitcoin funds saw rare net outflows, suggesting some profit-taking after this year’s extraordinary rally, while ether ETFs attracted heavy inflows that pushed assets under management to record levels. As a result, bitcoin dominance slipped to its lowest point since January, leaving the overall market capitalization of digital assets roughly flat on the month. Despite this sideways performance, market activity remained elevated. Spot trading volumes held above their twelve-month average — unusual for the typically quiet summer season — and derivatives markets were just as lively. Open interest in bitcoin and ether options reached new highs, and August set a record for BTC option trading volumes at $145 billion. Implied volatility stayed relatively subdued but did tick up toward month-end, hinting that the options market may be underestimating risk. While bitcoin paused, gold was on a tear. A perfect storm of falling rate expectations, persistent core inflation, widening trade deficits, a weaker dollar, geopolitical risks and mounting political uncertainty propelled the yellow metal to successive record highs. The dismissal of Fed Governor Lisa Cook by the Trump administration further stirred concerns over the long-term independence of the Federal Reserve. Treasury yields hardly budged, but gold — as a traditional hedge against inflation and systemic risk — jumped sharply. Bitcoin, however, traded lower on the day the news broke. This raises the perennial question of whether bitcoin truly deserves the label “digital gold.” Its…

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Filed under: News - @ September 11, 2025 5:28 am