Crypto's Ups and Downs: Why Investors Are Turning to Gold

Investors are shifting their money from crypto to gold and silver. This move could slow down the crypto market's recovery. Over the past 10 days, the total value of stablecoins has dropped by $2. 24 billion. This decline suggests that people are pulling their money out of crypto and putting it into safer investments. When times are uncertain, investors often choose safer options. Gold and silver are known to hold their value during tough economic times. Crypto, on the other hand, is seen as a riskier investment. This shift in investor behavior is a big deal for the crypto market. Bitcoin was doing well until October 10, 2025. On that day, over $19 billion worth of leveraged crypto positions were wiped out. Bitcoin's value dropped from about $121, 500 to below $103, 000 in just one day. Since then, Bitcoin has fallen even further to $88, 080. Meanwhile, gold has soared more than 20% to break the $5, 000 barrier, and silver has more than doubled in market value.Tether, a major stablecoin issuer, has been buying a lot of gold recently. In the fourth quarter of 2025 alone, Tether bought 27 metric tons of gold worth $4. 4 billion. This shows that even big players in the crypto world are looking to gold for stability. For the crypto market to recover, the value of stablecoins needs to stop falling and start rising again. This would signal that new money is coming into the ecosystem and that investors are feeling more confident. Until then, smaller and riskier crypto assets, known as altcoins, will continue to struggle more than Bitcoin. Bitcoin usually holds up better than altcoins in these situations, but the reduced supply of stablecoins still limits the upside across the market. Investors need to see stablecoin growth before they can feel confident about putting their money back into crypto.