Bitcoin News Today: Bitcoin Pits Crypto's Inflation Hedge Against Gold's Volatility

BlackRock Inc. CEO Larry Fink has positioned Bitcoin as a potential hedge against currency debasement, a stance underscored by the firm's recent investment in crypto exchange Bullish. The Wall Street giant, alongside Ark Invest, has committed to purchasing $200 million worth of shares in Bullish's upsized initial public offering (IPO), which now targets a $4.8 billion valuation. The IPO, set to trade under the ticker "BLSH," follows a net income estimate of $106 million to $109 million for Q2 2025, marking a turnaround after prior losses, according to a CoinDesk report. This institutional backing reflects growing confidence in crypto infrastructure as traditional investors seek alternatives to fiat currencies amid concerns over inflation and monetary policy.

The crypto market itself has shown resilience despite a recent $19 billion liquidation event in late October, which pushed Bitcoin's price to a four-month low of $104,000. Standard Chartered's global head of digital assets research, Geoff Kendrick, argues that the crash could catalyze a rally, with Bitcoin potentially reaching $200,000 by year-end 2025. He attributes this optimism to the asset's role as a hedge against fiat devaluation, a narrative gaining traction as central banks delay rate hikes and maintain accommodative policies, according to a TradingView article. However, the lack of inflows into U.S. spot Bitcoin ETFs has tempered upward momentum, with October shaping up as one of the weakest months for the cryptocurrency since 2013.

Meanwhile, Bitcoin ETFs have seen $20 million in inflows amid U.S.-China tensions, contrasting with Ethereum's $127 million outflows. Analysts note that Bitcoin's performance remains below its monthly opening price, raising concerns about a negative "Uptober" if prices fail to rebound. Ethereum, trading near $3,957, has shown on-chain signs of accumulation but faces pressure to break above $4,000 to validate a potential rebound, according to a CryptoNews report. The divergence between Bitcoin and Ethereum highlights shifting investor sentiment, with Bitcoin increasingly viewed as a safe-haven asset amid macroeconomic uncertainty.

This trend contrasts sharply with gold's recent sharp decline. Spot gold prices fell 6.3% in a single day-the steepest drop since 2013-erasing $1.7 trillion in market capitalization. Analysts attributed the sell-off to profit-taking after a strong rally and waning seasonal demand around India's Diwali festival. Gold ETFs, however, have still seen record-breaking inflows of $108 billion in 2025, with projections of continued institutional demand, according to a Discovery Alert report. The coexistence of gold's short-term volatility and long-term inflows underscores the complex dynamics shaping safe-haven assets, as investors balance traditional havens with emerging digital alternatives.

BlackRock's investment in Bullish aligns with broader institutional moves into crypto. The firm's participation in the IPO-alongside regulatory clarity and rising crypto prices-signals a maturation of the industry. "The convergence of multiple demand drivers, including Bitcoin's perceived role as a hedge against currency debasement, is reshaping institutional investment strategies," said a source close to the transaction. This shift is evident in the growing number of crypto-native products, such as Bullish's Visa-based crypto card and Digitap's omnibank platform, which aim to bridge fiat and digital assets, as highlighted in a Business Insider article.

As the crypto market navigates regulatory and macroeconomic headwinds, the interplay between Bitcoin, gold, and ETF flows will remain pivotal. With BlackRock and other major players doubling down on crypto infrastructure, the debate over Bitcoin's utility as a hedge against fiat devaluation is likely to intensify in the coming months.