The plan consists of utilizing $300 billion of Russian reserves for Ukrainian reconstruction.
Bitcoin (BTC) fell beneath USD 110,000 however rebounded strongly above USD 113,000 on the identical day.
The monetary markets are experiencing a day of excessive volatility this Tuesday, October 21, marked by two apparently opposing narratives: a drastic collapse in treasured metals and renewed optimism concerning the finish of the conflict in Ukraine. On this context, bitcoin (BTC) managed to regain floor, displaying resilience within the face of the panic that swept gold.
Gold posted its worst day by day drop since 2013, with spot costs plunging as a lot as 6.3% in lower than 24 hours. Silver had the same destiny, plunging 8.7%.
The next graph exhibits the value of gold up to now in 2025:
This sell-off was fueled by buyers locking in income following a historic rally that had left metals overvalued. As CriptoNoticias reported yesterday, This overvaluation of gold might trigger a rotation of capital in the direction of bitcoin.
Dan Deming, an analyst at KKM Monetary, mentioned a few days in the past – that’s, earlier than this fall –:
Gold’s outperformance in comparison with bitcoin has overweighted portfolios, establishing a rebalancing. Analysts count on flows to shift towards bitcoin due to its larger beta. Gold’s power hints at an awakening of arduous property, whereas bitcoin continues its maturation from speculative automobile to official retailer of worth.
Dan Deming, analyst at KKM Monetary
The catalyst for this revenue taking in gold seems to be a big discount in geopolitical threat. European nations, in collaboration with Ukraine, are making ready a 12-point proposal to finish conflict with Russia. This plan seeks to freeze the battle on its present battle strains, a stance actively promoted by US President Donald Trump.
The proposal, in accordance with data revealed by Bloomberg, rejects Vladimir Putin’s calls for to surrender territory in change for peace. As a substitute, it proposes the return of deported youngsters, an change of prisoners, safety ensures for Ukraine and a quick monitor for its entry into the European Union.
Sanctions on Russia would steadily riseand its $300 billion in frozen reserves would solely be returned if Moscow contributes to the reconstruction of Ukraine.
A “peace council” chaired by Trump would oversee implementation of the plan. The US president, who will quickly meet Putin in Budapest, has urged each side to “cease the place they’re.” Ukrainian President Volodymyr Zelenskiy said that, though nothing is for certain, “now we have come nearer to a potential finish to the conflict.”
Whereas gold, the normal protected haven asset, collapsed on the prospect of peace, bitcoin demonstrated divergent habits. The next graph exhibits the value of the digital foreign money up to now in 2025:
Having fallen beneath $110,000 earlier within the day, bitcoin regained momentum and returned above the $113,000 mark.
