Precious metals are stealing the spotlight as investors rush to safety. Silver has hit a new all-time high, while gold jumped 16% in a day, trading near its October all-time high of $4,381.
Meanwhile, Bitcoin is falling behind, struggling to break above $90,000 as money shifts away from crypto.
Gold and Silver Hit Record High as Bitcoin Slips
According to global market data, gold prices have surged to fresh highs, trading above $4,320 per ounce, and up more than 60% year-to-date. Meanwhile, Silver has shown even stronger momentum, rising to $66 for the first time.
These gains come as Bitcoin trades near $86,700, down almost 7% over the past week, clearly underperforming compared to precious metals.
Analysts say the rally in gold and silver shows that investors are moving toward safer assets. Growing uncertainty around monetary policy and expectations of further U.S. Federal Reserve rate cuts are weakening the dollar.
This is boosting demand for non-yielding assets like gold and silver, which usually perform well when real yields fall.
China’s Gold Buying Accelerates as Bitcoin Mining Faces Pressure
China has played a key role in this rotation. Reports show the People’s Bank of China has been adding gold to its reserves for several months in a row. This fits China’s long-term plan to reduce its reliance on the U.S. dollar.
At the same time, China has tightened Bitcoin mining rules again, shutting down miners in regions like Xinjiang.
This opposite approach, buying gold while restricting Bitcoin, has supported gold prices and added pressure on the crypto market.
Bitcoin vs Gold: Rare Signal Appears
Despite Bitcoin’s weakness, analysts say this looks more like a rotation, not a rejection of Bitcoin. Crypto trader Michael van de Poppe points to a rare technical signal on the Bitcoin-to-Gold (BTC/XAU) chart.
He notes that Bitcoin’s RSI compared to gold has dropped below 30, a level seen only three times before, 2015, 2018, and 2022. In each case, Bitcoin later formed a major bottom against gold.
Van de Poppe says this does not guarantee a reversal, but it suggests gold may now be overvalued compared to Bitcoin. In past cycles, such extremes often led to money flowing back into Bitcoin.
Key Price Levels to Watch
From a technical perspective:
- Bitcoin support: $84,000–$85,000
- Bitcoin resistance: $90,000–$92,000
A break above resistance could signal renewed upside momentum.
Van de Poppe believes January could mark a macro peak for gold, especially if liquidity conditions tighten or a major economic event hits markets.
However, Bitcoin, which hit all-time highs above $126,000 in October 2025, is currently underperforming. While price may lag, shifting liquidity patterns hint that Bitcoin could regain strength once precious metals cool off.
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