The financial market experienced a historic day this October 21, 2025. The price of XRP posted a 3% gain, driven by a massive rotation of flows from gold to Bitcoin. Bitcoin broke the $110,000 barrier, while gold suffered its worst daily drop since 2020. This event directly impacted institutional funds, traders, and treasuries.
The session’s data was powerful. Bitcoin not only surpassed $110,000, but it briefly touched $114,000, consolidating its multi-week climb. In contrast, gold plummeted between 5.3% and 5.57%. The precious metal fell to the $4,114 zone per ounce, abandoning its recent high of $4,381.21. XRP moved in sync with the crypto leader, adding 3% amid a clear “risk-on” environment.
The significance of this day lies in the close correlation observed. XRP once again demonstrated its high dependency on Bitcoin’s movement. Financial market analysts noted that the correlation between the two digital assets ranges from 0.64 to 0.91, depending on the period analyzed. This means that XRP tends to replicate BTC’s direction consistently. The event was described by observers as “money leaving gold and entering crypto.”
Are institutions readjusting their treasuries?
This realignment forces risk managers to recalibrate their strategies. The rotation affects the liquidity and hedges of companies that diversify between gold and digital assets. According to an analysis from JPMorgan, Bitcoin appears up to 40% cheaper than gold when adjusted for volatility. This perception fuels the “digital gold” narrative and the potential entry of more capital into ETFs. Furthermore, this volatility increases the risk of rapid reversals as investors take profits.
The October 21 session shows a significant, albeit temporary, shift in investor preferences. The adjustment forced a recalibration of hedges and institutional liquidity. If the “digital gold” narrative solidifies and the U.S. dollar maintains its strength, Bitcoin could continue to attract capital. Consequently, XRP could directly benefit from this momentum in the coming weeks.
