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Gold and Silver Hit Record Highs as Bitcoin Price Slips Below $90K

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Why are Bitcoin and gold rising together?

The post Gold and Silver Hit Record Highs as Bitcoin Price Slips Below $90K appeared first on Coinpedia Fintech News

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.

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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.

gold bitcoin 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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FAQs

Does a strong rally in gold and silver weaken Bitcoin’s long-term investment case?

Not necessarily. Gold and Bitcoin often respond to different stages of the same macro cycle, with gold typically benefiting first during uncertainty and Bitcoin gaining later as liquidity improves. Many institutional investors still view Bitcoin as a long-term hedge, even if it underperforms in the short term.

How could central bank actions influence the next move for Bitcoin and metals?

If central banks signal slower rate cuts or tighter liquidity, gold’s momentum could fade as real yields stabilize. In contrast, renewed monetary easing or fiscal stimulus would likely improve liquidity conditions, which historically support higher-risk assets like Bitcoin.

Who is most affected by this shift in market leadership right now?

Short-term traders and leveraged crypto investors feel the impact first, as price rotations can trigger liquidations and volatility. Long-term investors, including pension funds and sovereign wealth managers, are more focused on how these moves reshape asset allocation strategies over the coming quarters.

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