Bitcoin Prices Rise Above $114,000 As Risk Appetite Returns

Bitcoin prices have rallied over the last few days, climbing past $114,000 on Tuesday, October 21 as markets got their risk appetite back.

The world’s most prominent digital currency rose to as much as $114,082.29, according to Coinbase data from TradingView.

At this point, it was up roughly 10.2% from the multimonth low of approximately $103,500 it reached on Friday, October 17, additional Coinbase figures from TradingView reveal. That day, the the cryptocurrency reached its lowest point since late June.

“Bitcoin’s rebound appears driven by a combination of renewed risk appetite following expectations of a near-term Fed rate cut, easing macro concerns, and stabilization after last week’s leveraged liquidations,” Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, said via email.

Marc P. Bernegger, cofounder of crypto fund of funds AltAlpha Digital, also highlighted a shift in sentiment, although he provided a different explanation for what caused this change.

“Recent signals of easing of strained relations between the U.S. and China have sparked a risk-on rally across assets,” he stated via emailed commentary. “President Trump’s October 14 comments on tariffs (initially escalating to 100% on Chinese imports) triggered a BTC dip to $105k, but Beijing’s October 19 response—easing export curbs—reversed sentiment overnight.”

“This led to $1.5 billion in spot market inflows, lifting BTC back above $114k,” Bernegger continued. The analyst highlighted the significant outflows that gold exchange-traded funds (ETFs) suffered last week, claiming that traders rotated out of the highly visible precious metal and into bitcoin as market sentiment is strained by concerns about global debt.

Independent cryptocurrency analyst Armando Aguilar also spoke to how many investors have been rotating into bitcoin.

“Gold and silver recently experienced their largest single-day declines in over a decade, which led investors to jump into Bitcoin and other digital assets,” he clarified through emailed commentary.

“Spot gold dropped as much as 6.3%, falling from a recent record high of $4,381 to $4,082.03 per ounce, representing its largest one-day percentage decline since 2013,” Aguilar noted. “Silver saw an even steeper fall, with spot prices plunging between 7% and 8.7%, reaching $47.89 per ounce—the most significant single-day drop since February 2021.”

The analyst also emphasized the notable rebound that bitcoin has experienced since its decline late last week. “BTC-rebounded from last Friday’s massive sell off, driven by long-term holders pulling coins off exchanges,” he stated.

Bitcoin-Fiat Disentanglement

Bitcoin has been moving out of tandem with fiat assets over the last few days, according to Tim Enneking, managing partner of Psalion. This is most certainly a positive development for the world’s most prominent digital currency, he claimed.

“BTC has been going through a fascinating couple of days,” he said via email. “Regardless of the direction of the move, the extremely positive point is that there has been little correlation between BTC and fiat markets (yesterday) and gold (today), which is fabulous!”

“The more the world judges BTC and other tokens on their own merits, and doesn’t lump them in with ‘risk-on’ assets, the better for BTC," Enneking continued.

The cryptocurrency generated significant visibility in the past for being part of an asset class that frequently moved out of tandem with more traditional assets like stocks and bonds, a development that was outlined in a 2016 white paper titled “Bitcoin: Ringing the Bell for a New Asset Class.”

This situation changed over time, as the correlation between bitcoin and stocks increased notably in 2020, according to data included in an article authored by CME Group economist Mark Shore.

“Daily returns data from January 2014 to April 2025 reveal a correlation of 0.2 between bitcoin and major equity indices,” the article stated.

“In 2020, the correlation between bitcoin and the S&P 500 and Nasdaq-100 indices shifted from being non-correlated to a positive relationship, with rolling correlations jumping to about 0.5,” the piece continued.

“The positive correlation is not limited to a single index,” the article added, stating that “This suggests that bitcoin’s performance is now more closely tied to the broader economic and market conditions.”