Sovereign Wealth Funds Sell Gold to Buy Bitcoin?...Will it Trigger a BTC $100,000 Rally?

▲ Bitcoin (BTC), Gold/AI generated image ©

Claims that some sovereign wealth funds are selling gold and foreign exchange reserves to buy Bitcoin (BTC) are drawing attention to whether a shift in institutional asset allocation will become a new upward driver. In particular, it was found that major institutions surveyed did not sell BTC even during the sharp drop from $125,000 to $60,000, indicating that institutional long-term confidence is being maintained.

According to crypto-specialized media Watcher.Guru on September 30 (local time), Ryan Rasmussen, Head of Research at Bitwise, stated that a sovereign wealth fund recently contacted by Bitwise sold off foreign exchange and gold holdings to secure some funds for Bitcoin investment. The media noted institutions' movement of funds from gold to Bitcoin as a hedging tool against currency debasement.

Institutions also showed strong willingness to hold BTC. A survey of 15 major institutions revealed that not a single institution sold BTC while Bitcoin dropped from $125,000 to $60,000. Watcher.Guru assessed this as a sign that institutional investors maintain significant confidence in Bitcoin despite sharp price fluctuations.

However, the short-term market situation is not easy. Bitcoin showed strong upward momentum twice in late August and early September, recovering to $87,000 at one point, but failed to break $90,000 and subsequently corrected to $83,000. The media explained that the recent rally was boosted by US President Donald Trump's White House crypto event and the US Treasury's expanded bond buyback. It is analyzed that rising interest rates due to high inflation have since increased the burden on risky asset investments.

The conflict between the US and Iran was also cited as a variable limiting Bitcoin's short-term rebound. If the war continues without an agreement between the two countries and international oil prices remain high, inflation problems could worsen again. Watcher.Guru diagnosed that in such an environment, Bitcoin would find it difficult to show strong upward momentum and is likely to continue a sideways trend for some time.

In the mid to long term, institutional demand and the macroeconomic environment are expected to determine the future direction. Bernstein expects Bitcoin to recover to $100,000 by the end of this year, and if it actually reaches $100,000, it could trigger a new bull market across the entire crypto asset market. However, the media's assessment is that if economic instability deepens further, there remains a possibility that BTC could face additional corrections instead of rising, making it difficult to conclude a large-scale rally based solely on some institutional funds moving from gold to Bitcoin.

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