Key Notes
- Bitcoin's price rose 10% over 10 days, reclaiming the $113,800 level as investor sentiment improved.
- Gold’s rally paused at $4,400, prompting $200 million in new Bitcoin deposits across DeFi platforms.
- Investors are rotating from Gold to yield-bearing BTC positions amid ongoing U.S.–China trade tussle.
Bitcoin price opened trading at $111,200 on Sunday, October before moving up 2% to hit $113,800. Since Gold’s historic price discovery phase paused at $4,380 on October 18, Bitcoin-Defi protocols have seen $400 million in fresh TVL deposits. Increased long-term exposure to BTC suggests investors are now rotating towards yield-bearing BTC positions.
Bitcoin Recovers as Trump Meets Xi Jinping
Bitcoin recovered to 10-day peaks near $114,000 on Sunday, as President Trump prepares to meet China’s Xi Jinping in Korea to discuss trade relations. The meeting is scheduled as the climax to Trump’s week-long visit to Asia, which included stops in Japan and Malaysia, where he oversaw peace pact signing between Cambodia and Thailand, stirring optimism across global markets over the weekend.
In the past ten days, Bitcoin has clawed back nearly 10% of its mid-October losses, rising from $103,500 on October 17 to $113,800 at press time on Sunday, October 26.
Meanwhile, Gold, which hit a record high of $4,381 per ounce on October 18, has experienced a 6% decline from its peak, trading at $4,103 at press time.
Bitcoin price action and correlation to Gold (XAU), October 26, 2025 | Source: TradingView
Bitcoin’s weekend recovery follows a period of intense volatility in mid-October. The crypto market was rattled by President Trump’s now-deferred tariff call on China on October 10 and the prolonged U.S. government shutdown that began on October 1.
Together, these events triggered a sharp capital flight toward traditional safe-haven assets, leading to a $19.4 billion liquidation wave in cryptocurrency derivatives markets — the largest single-day blowout on record.
Between October 10 and October 17, Bitcoin fell 16% from $123,800 to lows of $103,500, while Gold rallied 12% from $3,900 to $4,381 per ounce. According to TradingView data, Bitcoin’s correlation with Gold sank to -0.84, its lowest level since February 2025, when tensions surrounding Trump’s tariffs on its North American neighbors, Mexico and Canada, disrupted global market stability .
BTC TVL Rises $400M in 10 Days: Is Gold Ceding Ground to Bitcoin?
Since Gold’s record-breaking rally stalled on October 17, investors have begun reallocating capital toward Bitcoin and other yield-generating digital assets. On-chain data shows that the total value of Bitcoin locked (TVL) in decentralized finance protocols climbed from $7.8 billion to $8.2 billion between October 17 and October 26, an increase of roughly $400 million in ten days.
Bitcoin TVL rises $400 million from $7.8 billion to $8.2 billion between Oct 17 – Oct 26 | Source: Artemis
When investors move BTC into staking and lending protocols to capture on-chain yields, it signals renewed long-term confidence in Bitcoin, particularly as Gold’s rally shows signs of exhaustion.
LYN ALDEN: "Bitcoin is gold combined with a tech stock." pic.twitter.com/fF7zEYmgN8
— Bitcoin Archive (@BTC_Archive) October 25, 2025
Meanwhile, prominent macro analyst Lyn Alden played down the influence on Gold on Bitcoin’s near-term price outlook, during an interview with Youtuber David Lin. When quizzed on both assets’ prospects, Alden noted that Bitcoin is now competing more directly with equities than with Gold
Alden added that Bitcoin’s risk-adjusted yield potential and its adjacency to tech make it more attractive to portfolio managers than static hedging instruments like Gold.
Bitcoin Price Outlook: Markets Await Trump–Xi Meeting and Fed Policy Decision
Looking ahead, global markets remain tense as the U.S. government shutdown enters its fourth week with little political resolution in sight. Investor sentiment is likely to hinge on two key events this week: the Federal Reserve’s policy meeting on October 29 and the Trump–Xi Jinping summit scheduled for October 30.
US Fed Rate probabilities for October 29, FOMC meeting | Source: CME Fedwatch
Investors are currently pricing in a 96.2% chance of another rate cut of 375 to 400 basis points, according to CME FedWatch .
If the talks yield positive trade signals or the Fed’s decision leans dovish as widely expected, Bitcoin could extend its upward trajectory toward the $115,000 to $118,000 range. However, renewed geopolitical friction or hawkish monetary tightening could trigger a near-term pullback toward $109,000 support.
