Bitcoin Catches Bid, Jumping Above $112K as Gold and Silver Plunge: Why This is the Starting Point For Altcoin Season

Bitcoin (BTC) surged past $112,000 on Tuesday as an unusual trend played out: investors rotated out of gold and silver, both of which suffered their steepest single-day drop in years. Spot gold had its worst day since 2013 as it lost around 6%, while silver plunged around 9%, marking its sharpest single-day plunge since 2021.

The timing of Bitcoin's gains coincided with the collapse of gold and silver, prompting some experts to speculate that this is a classic "BTC-first" event preceding altseason. If this does mark the start of altseason, capital typically flows to real-utility projects, such as Digitap ($TAP), a new startup with a live global money app.

3 Signals From Tuesday: Metals Drop, BTC Pops, Alts Stir

Gold and silver's multi-month rally abruptly reversed on Tuesday, catching investors who had grown accustomed to steady gains in recent months off guard. Analysts note that such a harsh correction among safe-haven assets, with no new news, likely reflects profit-taking and a shift to risk-on assets.

The first beneficiary was Bitcoin, which rebounded from around $107,000 to over $112,000 within hours. With gold and silver at least temporarily out of favor, sidelined cash made its way into the crypto market, rapidly helping Bitcoin catch a bid at the expense of metals.

This rotation in market fortunes could prove to be more than just a one-off event. Tuesday's selloff in precious metals could very well be the spark that lifts Bitcoin back to all-time highs, but, perhaps more importantly, ignites the next altcoin season.

Source: @HHorsley

Why A Small Gold Shift Can Lift BTC - And Pull Up Alts

The timing of Tuesday's selloff could be seen as a coincidence. Bitwise argued in a report just prior to gold and silver's selloff that a capital rotation of 3% to 4% away from gold and into Bitcoin could see the world's largest crypto double in value.

Gold is the world's fourth most valuable asset at $27 trillion, so its massive value implies that even small movements would have outsized impacts on Bitcoin. The reality is that capital didn't flow into just Bitcoin; altcoins, big and small, saw large amounts of buying activity. In many cases, altcoins outperformed Bitcoin on Tuesday.

This is confirmed by the Altcoin Season Index, a measure of how top altcoins perform compared to Bitcoin. The index has risen in recent days from 24 to 29 and has now more than doubled from its yearly low of 12 on April 25.

Granted, this is still firmly in "Bitcoin season" territory, but Tuesday's trading action made it clear that while Bitcoin will benefit from gold and silver's selloffs, altcoins could see even larger gains.

Digitap's Global Money App Bridges Crypto And Everyday Pay

If Tuesday's trend of selling gold and silver and buying altcoins continues, early-stage crypto presales with real utility are also likely to benefit. One early mover positioning for this next phase is Digitap, the creator of the world's first "omni-bank" platform that blends traditional finance with crypto.

Digitap isn't just a concept; it already offers a functional global money app, featuring a crypto wallet, offshore fiat bank accounts, Visa-branded cards, and cross-border transfers. Digitap is targeting the more than 1.4 billion unbanked adults worldwide and the trillion-dollar payments market.

In other words, $TAP ties into a real use case that combines crypto's efficiency with everyday finance. For example, peer-to-peer transfers can be completed within minutes, if not seconds, at a cost of less than 1%. By contrast, on average, money remitters charge consumers more than 6% and still force their customers to wait days to receive their money.

Source: Digitap

Whales Add $TAP As Stage Two Nears A Price Step-Up

The timing of gold and silver investors rushing for the exits couldn't be better. Digitap's presale is currently in its second round and priced at $0.0194, but whales have been quietly buying over the past few weeks.

The next stage is scheduled for next week and will see the price automatically rise by 38% to $0.0268. This incentivizes early investors who recognize that the upside potential for Digitap appears significant if the broader market enters an altcoin boom.

Even if Altcoin Season is a bust, Digitap still has a lot to offer investors. The presale has a built-in price escalation, meaning investors are guaranteed a paper profit regardless of how the broader crypto market is performing. This means that investors can temporarily seek refuge in Digitap's presale while gaining exposure to a banking super app poised to disrupt outdated financial service providers.

Early Positioning In Utility Alts May Beat A BTC Hold

Bitcoin's surge above $112,000 during a precious metal plunge could prove to be the watershed momentum that investors had been waiting for: a potential altcoin season. Signs indeed point to an inflection point: fading safe-haven appeal, rising risk tolerance, and a Bitcoin breakout that historically paves the way for alternatives to rally.

Whether investors are betting on Bitwise's analysis to play out and Bitcoin doubling in value, or seeking exposure to high-potential startups like Digitap, the market often rewards investors who identify the best crypto to invest in today and act before the rest of the investor community catches on.

Discover how Digitap is unifying cash and crypto by checking out their project here:

Presale: https://presale.digitap.app

Website: https://digitap.app

Social: https://linktr.ee/digitap.app

BitWorld Media FZ-LLC SFFO0333 Al Shohada Road Al Hamra Industrial Zone - FZ - Ras al Khaimah 16111 Ras al Khaimah UAE United Arab Emirates

DigiTap is solving a major problem, banks don't get crypto, and crypto platforms don't get real-world finance. Users are caught between outdated banks and crypto platforms that don't connect to real-world spending. A modern money app was needed, so we built DigiTap - a true hybrid platform that merges the stability of fiat with the innovation of blockchain so you can earn, hold, and spend with both crypto and fiat.

This release was published on openPR.