Price of gold rising thanks to major crypto investor

Western central banks have been buying gold in record numbers this year as a hedge against rising inflation and a potential future war with Russia. However, as from this year, they have a serious crypto competitor. Tether, the largest crypto stablecoin, bought billions of dollars’ worth of gold in the past quarter, contributing to the price increase.

Tether

The story behind the record-breaking rise in the gold price – so far, the price has risen by a staggering 56% through 2025 – usually revolves around concerns about high government debt, as well as fears of a major war looming. However, two waves of gold price growth have been observed this year. The first was primarily financed by major Western central banks (and China), while the second is primarily attributed to Tether, the world’s largest stablecoin.

Tether has approximately $184 billion in assets (to secure the cryptocurrency’s peg to the US dollar), which it invests in a highly diversified manner. In recent years, this has primarily benefited US T-bills, but since the dollar’s decline this year, a shift in investment has been observed.

After Trump announced his tariff plan in April, the dollar fell rapidly, and investors reacted by exchanging dollar investments for gold. Tether also began purchasing gold in that second quarter, in record-breaking quantities. Some 26 tons in the third quarter alone.