Bitcoin’s September slump is back in focus as traders weigh a striking divergence with gold. The focus keyphrase, bitcoin’s September slump, also frames a deeper issue: markets treat crypto differently when stress hits.
Gold rallies while Bitcoin stumbles
According to the source, gold prices hit a new record at $3,557.99 per ounce on September 5, 2025. They are up roughly 35% year-to-date, buoyed by Federal Reserve rate cut expectations, geopolitical tensions, and strong central bank demand. Meanwhile, bitcoin’s September slump has historical backing. September is its worst month on average, with a -3.33% return over the past 12 years. Recently, bitcoin’s correlation with gold turned negative for the first time in six months, signaling a clear divergence as gold rallies.
The missing institutional cushion
Crypto lacks the institutional cushioning that gold and stocks enjoy during downturns. Central banks have been adding gold to reserves, and pension or sovereign funds can support equities. However, bitcoin’s September slump often exposes crypto’s vulnerability. On September 5, 2025, as Bitcoin dipped to around $110,700, companies with crypto exposure—such as MicroStrategy and Coinbase—also fell, with declines from 1.47% to over 4%.
As a result, the structural bid under gold contrasts with crypto’s more fragile flows. Therefore, when risk fades, bitcoin’s September slump can deepen, even as bullion benefits.
What to watch next
Correlation shifts between Bitcoin and gold, which recently flipped negative.
Fed rate cut expectations that continue to fuel gold’s momentum.
Whether institutional buyers emerge to support crypto in drawdowns.
For a primer on fiat-pegged assets that often trade differently during stress, see our guide on how stablecoins work.
For background on gold’s role as a reserve asset, see gold as an investment.
