Gold, silver shine in debasement trade as bitcoin is left behind

Core Viewpoint - Bitcoin (BTC) has faced a significant rejection at $90,000, highlighting that precious metals like gold and silver are currently outperforming BTC in the debasement trade [1][2] Group 1: Bitcoin Performance - BTC is currently trading around $88,000, which is a 30% decline from its early October record [2] - The BTC-gold ratio has peaked in late 2024 and has fallen over 50%, indicating a bear market for BTC relative to gold [4][5] - Long-term holders of BTC are experiencing structural selling, with approximately 1.6 million BTC reactivated since 2024, contributing to the downward pressure on BTC [6][7] Group 2: Precious Metals Performance - Gold is trading near record highs at approximately $4,350 per ounce, while silver has reached all-time highs above $66, marking a 40% increase since October [2] - The ongoing bull market in precious metals is noted as a significant factor that Bitcoin investors cannot overlook [2] Group 3: Market Dynamics - Bitcoin's weakness is attributed to its correlation with risky assets, particularly in speculative sectors like data centers and AI infrastructure, which have seen significant drawdowns recently [3] - There is a growing concern regarding the potential risks posed by quantum computing to Bitcoin's cryptographic security, adding uncertainty for investors [8] Group 4: Future Outlook - Analysts suggest that as the rally in gold cools, BTC may eventually take over as a preferred investment, indicating a potential shift in market dynamics [9]