BTC Surges Above $123K as Miner Buying Accelerates; VanEck Sees Potential $644K Target Amid Gold Strength

Bitcoin (BTC) recovered on Wednesday, bouncing from a low of $120,000 to trade near $123,500, marking a 1.5% gain over 24 hours.

Altcoins followed suit but did not fully reclaim earlier-week highs. Ethereum (ETH) rose to $4,331, Ripple (XRP) to $2.82, Solana (SOL) to $220.73, Dogecoin (DOGE) to $0.245, and Avalanche (AVAX) to $28.03, posting 1%–3% gains. The CoinDesk 20 Index increased 2%.

Crypto Miners Benefit from AI Hype
BTC mining stocks outperformed, fueled by optimism around AI-driven demand for computing power. Cipher Mining (CIFR) and Bitfarms (BITF) surged 11%–12%, while CleanSpark (CLSK) and Hut 8 (HUT) gained around 6%.

Fed Minutes Signal Possible Rate Cuts
The September Federal Reserve meeting minutes showed most officials still expect rate cuts later this year, though some argued no cut was needed in September. Upside inflation risks remain a key consideration.

Gold Continues to Lead Debasement Trade
Gold remains the primary beneficiary of risk-off flows, breaking above $4,000 and up 50% year-to-date. Rising government deficits, volatile bond markets, and expectations of looser monetary policy have driven demand. Japanese yields hit 17-year highs this week, pushing investors toward gold at the expense of riskier assets like crypto.

Charlie Morris, CIO at ByteTree, noted that gold’s rally is driven by fundamentals, not speculation:

“If deficits, money printing, instability, and rate cuts are driving the gold price higher, those factors need to shift before Bitcoin benefits,” he said.

Morris added that Bitcoin historically rallies as a second-wave beneficiary in macro-driven rotations:

“When gold starts to cool, the chances are that Bitcoin will get going again.”

Matthew Sigel of VanEck reaffirmed that Bitcoin could eventually capture up to half of gold’s market value. Based on gold’s recent surge, this implies a BTC price target of approximately $644,000, highlighting Bitcoin’s growing appeal as “digital gold” for younger generations.