Eric Trump prophecy comes true? As gold plummets, capital is accelerating its shift to Bitcoin

Elon Musk’s bold prediction that capital is shifting from gold to Bitcoin is being validated by recent market volatility. On December 30, spot gold experienced a short-term intraday decline of over $15, falling below the $4,330 per ounce level, with a daily drop of 4.47%. Meanwhile, Bitcoin, although also experiencing a correction and briefly dropping below $88,000, has stabilized above $87,000.

Market Signals

Market data as of December 30, 2025, reveal early signs of asset rotation. Spot gold prices suffered a significant setback that day, closing down sharply by 4.47%. More intense volatility was seen in the silver market, with spot silver plunging 9%. The broad decline in traditional precious metals contrasts sharply with the resilience of the Bitcoin market.

Although Bitcoin experienced fluctuations during the same period, briefly falling below $88,000, it overall saw a slight increase, rising 0.09% over 24 hours. Bitcoin has formed a strong support zone around $87,500.

Behind the Prediction

Elon Musk’s prediction is not unfounded. Veteran Wall Street macro investor Jordi Visser offers a professional interpretation. He refers to Bitcoin as “winged gold,” emphasizing its greater volatility and upside potential compared to gold. Visser explicitly states that once the Nasdaq rebounds, Bitcoin’s performance will surpass that of gold.

The capital shift is driven by profound generational investment preference differences. Visser observes that gold’s appeal is more concentrated among older investors, while younger generations are more inclined toward Bitcoin. This structural change is reshaping the global asset allocation landscape.

Policy-Driven Factors

The support from the Trump family for Bitcoin has a clear policy background. In March 2025, former U.S. President Donald Trump signed an executive order establishing the U.S. Strategic Bitcoin Reserve, which includes approximately 198,000 Bitcoin seized from criminal assets. This policy positions Bitcoin as “digital gold,” sparking market optimism amid crypto-friendly reforms.

Trump’s tax proposals also indirectly promote this trend. According to Jordi Visser, Trump’s tax policies focus on domestic wealth redistribution rather than simply cutting taxes for the wealthy. This policy environment creates favorable conditions for alternative assets, including Bitcoin.

Capital Migration Pathways

Elon Musk has observed a major capital migration globally, mainly at three levels. Institutional funds, royal wealth, and private family offices are increasingly using Bitcoin as a hedge and long-term asset allocation tool. Daily inflows into the Bitcoin market reach billions of dollars, with supply-demand imbalances becoming the main driver of Bitcoin’s scarcity. Even holding just 0.1 Bitcoin could become a “formidable wealth” in the future.

Price Forecast

As of December 30, 2025, according to the latest data from Gate platform, Bitcoin is supported around $88,000. Technical analysis indicates that Bitcoin has failed to break through the $90,000 resistance level and is currently consolidating above the $87,500 support zone. Key short-term resistance levels are near $88,000 and $88,500; breaking these could trigger a rebound toward $90,000.

Based on current market structure, institutional inflow trends, and policy environment, Bitcoin’s price trajectory in 2026 could follow two scenarios. If it breaks through the critical resistance at $90,000, it may test the $95,000 to $100,000 range.

Elon Musk is more optimistic, having predicted Bitcoin could rise to the $150,000 to $175,000 range.

Opportunities and Risks

In this capital shift, Gate provides users with important tools to seize the trend. Investors can easily establish Bitcoin positions through Gate’s spot trading or hedge and leverage using derivatives. Mining costs are a risk factor to watch. Currently, the average cost to mine one Bitcoin is between $80,000 and $90,000. If Bitcoin prices fall below this range, it could trigger selling pressure from miners. For investors seeking a conservative allocation, dollar-cost averaging (DCA) to buy Bitcoin regularly or earning holding income through Gate’s financial products are viable options.

The competition between gold and Bitcoin becomes especially clear at the end of 2025. As of December 30, gold plunged over 4% in a single day, while Bitcoin, after a brief correction, held firmly above $88,000. Wall Street calls Bitcoin “winged gold,” a fitting metaphor—it retains gold’s store of value function but offers faster liquidity and growth potential. Young investors are voting with their funds, choosing digital assets that represent the future, while policymakers are adjusting their stance. The establishment of the U.S. Strategic Bitcoin Reserve marks a fundamental shift in mainstream acceptance of cryptocurrencies. The direction of capital migration is now clear; the question is no longer whether it will happen, but how fast and how large-scale the transfer will be.