Gold Surges, Central Banks Shift Focus Amid Economic Challenges

BlockBeats News reports that spot gold price rose to $4,986.13 per ounce on January 25th, nearing the historic $5,000 mark, according to Bitget market data.

Gold’s ascent, surpassing U.S. Treasury reserves, signifies a shift in global reserve strategies and raises potential impacts on cryptocurrencies perceived as alternative assets.

Gold Nears $5,000 Amid Central Bank Diversification

Gold’s price rose 1.01% intraday, reaching $4,986.13 per ounce, indicating a historic shift in global reserve compositions. Emerging market central banks are actively buying gold as a hedge against geopolitical tensions and de-dollarization trends. Ray Dalio noted the crucial role of gold, referring to it as a “neutral” asset amid international monetary order changes.

Market reactions reflect the rising interest in gold as U.S. Treasuries drop in favor. However, Bitcoin and Ethereum recorded gains, maintaining their appeal as digital stores of value. Key figures, including Arthur Hayes and Raoul Pal, endorse crypto’s potential amid these movements, framing digital assets as promising alternatives amidst the evolving economic landscape.

Raoul Pal, Real Vision CEO, remarked: “Gold reserves overtaking Treasuries? Historic. This is why BTC/ETH are printing – real assets win in capital wars. $GOLD $BTC.”

Digital Assets Retain Value as U.S. Treasuries Decline

Did you know? The 65% surge in gold prices in 2025 mirrors significant historical trends, such as during the 1979-1980 period when gold saw a 140% increase as central banks diversified post-Bretton Woods agreements.

According to CoinMarketCap, Bitcoin trades at $88,760.54 with a market cap of $1.77 trillion USD and a market dominance of 59.14%. Despite a 0.61% drop over 24 hours, its long-term appeal sustains with a 19.99 million supply against a max of 21 million. Its price movement over 60 days saw a 1.99% rise.

The Coincu research team notes that shifting reserve strategies highlight the appeal of tangible assets like gold in uncertain times. Analysts project that digital assets could reassert themselves should economic tensions persist, emphasizing gold’s and crypto’s roles as potential safe havens.