Gold dropped 6.8% on October 21, recording its steepest single-day decline in 12 years after reaching a record high of $4,381 per ounce. Tether minted $1 billion USDT within 24 hours, according to blockchain data. Institutional investors allocated $619 million into Bitcoin and Ethereum ETFs with zero outflows, suggesting potential capital rotation from traditional assets into digital currencies.

Bitcoin trades around $107,600, reflecting a 0.7% decline over 24 hours and a 4.8% drop over the past week, data show. The cryptocurrency has struggled to regain momentum after briefly surpassing $112,000. Analysts remain divided on whether Bitcoin will rebound or face deeper correction, with on-chain metrics presenting mixed signals.

Matt Hougan, chief investment officer at Bitwise, has compared gold's 57% surge in 2025 to bitcoin's current consolidation phase. He suggests bitcoin may follow a similar breakout pattern once its remaining seller base is depleted, mirroring gold's trajectory after sustained central bank purchases exhausted price-sensitive sellers. Since January 2024, institutional channels and corporations have acquired roughly 1.39 million BTC through spot ETFs and direct purchases, creating a supply-demand imbalance that Hougan believes could drive a breakout.

BlackRock acquired 1,884 BTC on October 21 in a transaction worth approximately $200 million. The purchase brought the fund's total Bitcoin holdings to 803,200 BTC, valued at roughly $86.5 billion, data show. The acquisition occurred as Bitcoin declined nearly 3% to an intraday low of $107,552, erasing weekend gains.

A major Bitcoin holder has initiated a $235 million short position with 10x leverage at $111,190, following reported profits of $200 million from BTC's recent drop to $100,000. The position faces liquidation risk if Bitcoin rises above $112,368. Separately, another large trader known as the "Trump insider" has expanded his short to 2,100 BTC worth approximately $227 million.

Addresses holding 100-1,000 BTC have increased their holdings in recent periods, replicating accumulation patterns seen before the 2017 and 2021 bull markets, according to Alphractal. Liquidation data shows the highest concentration of open liquidations has shifted to short positions, while Bitcoin traded near $108,292 with technical indicators signaling oversold conditions. The trend reflects long-term conviction among mid-tier holders contrasted with short-term uncertainty driven by derivatives positioning.

Senator Cynthia Lummis called on the Consumer Financial Protection Bureau to expedite its open banking regulation, warning that major banks have restricted account access for political reasons, including blocking digital asset firms. The rule, finalized on October 22, 2024, allows consumers to share financial data with third-party applications through APIs. Industry groups and crypto advocates have urged the CFPB to ensure Americans retain ownership of their financial data.