Stablecoin Drop Signals Flight to Gold as Bitcoin Lags: Santiment

A $2.24 billion decline in the combined market capitalization of leading stablecoins over the last 10 days suggests capital is exiting the crypto market and could slow a broader recovery, according to analytics firm Santiment.

Santiment said in a post to Facebook on Monday that funds appear to be rotating into traditional safe-haven assets such as gold and silver, which have reached new highs, while Bitcoin (BTC), the wider crypto market and stablecoins have pulled back.

Top 12 stablecoins by market cap collectively fell by $2.24 billion over the past 10 days. Source: Twitter

“A falling stablecoin market cap shows that many investors are cashing out to fiat instead of preparing to buy dips,” Santiment noted, adding that demand for gold and silver indicates investors are prioritizing safety during periods of uncertainty.

Gold and silver have outperformed Bitcoin in recent months

Bitcoin had been trending higher in 2025 until Oct. 10, when more than $19 billion in leveraged crypto positions were liquidated and BTC dropped from about $121,500 to below $103,000 in a single session. Since then, Bitcoin has declined to $88,080, while gold has risen more than 20% to surpass the $5,000 level, and silver’s market value has more than doubled.

Stablecoin issuer Tether has been among the more active buyers of gold in recent months, purchasing 27 metric tons valued at $4.4 billion in the fourth quarter of 2025.

Stablecoin growth seen as a precursor to market recovery

According to Blockshow, Santiment said sustained crypto recoveries typically begin when stablecoin market caps stop falling and start expanding again, signaling new capital entering the ecosystem and improving investor confidence.

Until that occurs, the firm added, smaller and riskier crypto assets are likely to underperform relative to Bitcoin. While BTC may be more resilient in such conditions, a reduced stablecoin supply can still constrain upside across the market.

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