Bitcoin News Today: Crypto and Gold's Rise as 'Assets of Fear' Driven by Tokenization and Central Bank Moves

Investors are increasingly turning to cryptocurrency and gold as "assets of fear," a term coined by BlackRock CEO Larry Fink during a panel at the Future Investment Initiative in Riyadh. Fink attributed this trend to growing anxieties over the devaluation of fiat currencies and global economic instability. Central banks, meanwhile, are accelerating their gold purchases, while tokenization and digital asset adoption are reshaping financial infrastructure.

The surge in demand for these assets reflects broader concerns about systemic risks, including inflation and geopolitical tensions. Gold, for instance, saw central banks add 1,089 tonnes to their reserves in 2024, pushing gold's share of global reserves to 24% in Q2 2025. Meanwhile, Bitcoin's role as an inflation hedge has gained traction, particularly amid dollar weakness, though its performance during pure inflationary periods remains debated.

Fink also highlighted the U.S. economy's vulnerability due to its reliance on foreign buyers for up to 35% of Treasury sales. This dependency, he argued, creates risks if demand wanes, potentially triggering a multiplier effect on interest rates and borrowing costs. "Unlocking private capital is critical to reducing this exposure," he said, citing data from U.S. Treasury reports.

Tokenization is another key driver of change, with Fink emphasizing its potential to disrupt traditional finance. Over 90% of central banks are exploring central bank digital currencies (CBDCs), and BlackRock itself has launched a tokenized money market fund on Ethereum. The firm's iShares Bitcoin Trust, holding approximately 805,806 BTC, underscores its institutional embrace of digital assets.

The crypto sector is also seeing rapid consolidation. In Q3 2025, crypto mergers and acquisitions hit a record $10 billion, fueled by global interest rate cuts and a push to integrate blockchain with traditional finance. Projects like the MegaETH ICO, which raised $350 million in pre-deposits, and Circle's Arc testnet — backed by BlackRock, Visa, and AWS — are illustrative of the sector's maturation.

Gold's recent volatility, however, underscores market uncertainties. Prices dropped below $4,000 in late October from a peak of $4,377, reflecting short-term pressures from interest rate expectations. Yet, central bank buying has kept annual gold demand above 700 tons since 2022.

Fink's remarks align with broader industry trends. For example, Carnegie Investment Counsel recently invested $213,000 in Kinross Gold Corporation, while Barclays seeks a CMA licence to expand its Saudi Arabian operations, signaling confidence in the region's financial markets. Additionally, the U.S.-China trade truce and potential tariff adjustments have injected optimism into crypto markets, with Bitcoin rising nearly 2% following comments from Trump.

The interplay between these trends highlights a shifting global financial landscape. As tokenization accelerates and central banks grapple with digitalization, investors must navigate both opportunities and risks. "We're not spending enough time talking about how quickly we'll tokenize every financial asset," Fink warned, noting that many nations remain unprepared for the pace of technological change.