Bitcoin’s role amid rate cuts: risk asset or digital gold?

The global markets are moving through one of the most confusing environments in recent memory. While equities and gold both set fresh all time highs, Bitcoin stumbled in the wake of a major liquidation event. Scott Melker and Jeff LaBerge, head of capital markets at Bitdeer, explored how Bitcoin fits into this cross asset puzzle and whether it is finally evolving beyond its risk asset label.

Following recent rate cuts, many traders expected a broad rally in risk assets. Instead, the crypto market saw a 1.7 billion dollar liquidation flush, largely concentrated in altcoins. Contrary to the popular narrative, only 300 to 400 million dollars of that came from Bitcoin.

This divergence created a stark contrast, Bitcoin drifted lower, even as stocks pushed into record territory and gold hit new highs. This is a combination that historically has not occurred in tandem.

Breaking free from the risk asset box

LaBerge argued that Bitcoin is gradually shedding its risk on risk off identity. For years, it tracked more closely with tech stocks than with defensive assets like gold. But recent behavior suggests a shift.

“We are inching closer to that digital gold classification,” he said, pointing to April as an example when equities finished flat, gold rose modestly, but Bitcoin surged 13 to 14 percent.

This type of price action reflects a slow but steady decoupling that could accelerate with greater institutional and retail adoption.

If Bitcoin can continue to behave independently of traditional asset classes, it may finally cement its role as digital gold rather than a speculative risk asset. For investors, that means less about chasing short term rallies and more about recognizing its long term diversification power in an increasingly correlated financial world.

This story was originally reported by TheStreet on Sep 30, 2025, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.

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