Bitcoin, Gold, and S&P 500 Are All Booming — Here’s Why
- Bitcoin price surged to above $126K, leaving gold and the S&P 500 amid broad market optimism.
- Data shows Bitcoin exchange outflows hit a three-year low, indicating accumulation.
- Bitcoin’s 14-day SMA indicates average outflows of 7,500 BTC, the highest since 2022–2023.
Bitcoin, gold, and U.S. stocks are soaring together in an unprecedented rally. Bitcoin reached an all-time high of $126,198, while gold climbed to $3,982 and the S&P 500 reached $6,748, according to Santiment. This surge across risk and safe-haven assets follows growing optimism ahead of another expected Federal Reserve rate cut later this month.
Bitcoin Outpaces Traditional Markets
From September 25, Bitcoin surged by over 14.6%, outpacing gold by 5.3% and the S&P 500’s 2.1% gain. This difference shows strong momentum in the crypto market as investors rotate toward risk assets. Notably, Bitcoin broke away from mid-September levels near $109,000 to reach its new peak above $126,000.
The report noted that no significant selling followed from whales, unlike previous sessions above $123,000. Elevated funding rates on Deribit and Hyperliquid, at 35% and 29% respectively, show aggressive leveraged positioning among traders.
This rally contrasts with earlier institution-led surges. The spot ETF inflows paused over the weekend, yet prices climbed higher, showing persistent retail and non-institutional demand. As leveraged traders chase gains, they warn of possible short-term corrections before continuation.
Investors Pull Bitcoin from Exchanges
CryptoQuant data shows that Bitcoin exchange netflows have fallen to a three-year low, indicating sustained accumulation among large holders. The 14-day simple moving average shows an average outflow of 7,500 BTC, the largest since 2022–2023.
Despite record prices, investors continue withdrawing coins from exchanges, suggesting reduced short-term selling pressure. The report added that such behavior typically indicates confidence in long-term value retention.
This coincides with Bitcoin balances on centralized exchanges reaching six-year lows, supporting the scarcity narrative. Even as Bitcoin spot ETFs recorded $3.2 billion in inflows last week, the second largest on record, direct exchange activity remains limited.
Matthew Sigel, head of digital asset research at VanEck, said Bitcoin could reach half of gold’s market cap after the next halving. He explained that younger consumers in emerging markets increasingly prefer Bitcoin as a store of value. Based on current gold valuations, Sigel estimates that this projection would imply a potential $644,000 value per Bitcoin.
Related: Bitcoin’s Uptober Rally: Liquidation Zones Tighten as Bulls Hold Momentum
Rising Stocks and Safe Haven Assets
The Kobeissi Letter described the ongoing rally as a rare financial moment where “everything is going up at once.” Bitcoin, gold, silver, and stocks have all surged in 2025. Silver’s value has climbed over 60%, while gold is worth $26.3 trillion, more than ten times Bitcoin’s market value.
The post also noted that gold, silver, and Bitcoin are all ranked among the ten largest assets. Meanwhile, the S&P 500 has gained over 39% in six months, and the Nasdaq 100 has logged six consecutive monthly gains, a streak seen only six times since 1986.
This broad-based rally has been supported by massive corporate investments, with the “Magnificent 7” companies reportedly spending over $100 billion per quarter in capital expenditures to expand artificial intelligence infrastructure.
Bitcoin’s breakout above $126,000, gold’s rise to $3,982, and the S&P 500’s climb to $6,748 collectively show a unique market phase where risk and safe assets surge together. Analysts from Santimen and CryptoQuant point to a mix of easing monetary policy, strong retail participation, and persistent accumulation as the main drivers of this surge across global markets.
