Bitcoin Lags Gold Rally as Valuation Opportunity Emerges

Bitcoin and crypto prices have sharply declined since reaching all-time highs in October, while gold, silver, and stock markets have experienced significant gains. However, a surprising warning signal has recently emerged. The bitcoin price is currently hovering at approximately $90,000 per bitcoin, a decline from its all-time high of $126,000. In contrast, gold and silver have seen increases of 20% and 64% respectively, as U.S. Treasury Secretary Scott Bessent unveils a potential price game-changer. Currently, Elon Musk appears to be subtly stoking speculation regarding his support for bitcoin, while forecasts suggest that gold and silver are set to experience significant gains through 2026—potentially setting the stage for a substantial surge in bitcoin prices.

“The 2025 rally in precious metals marks the beginning of a deep, structural shift in the international monetary system, from a U.S.-centric framework toward a more multipolar order,” Ramnivas Mundada said, predicting gold and silver will add another 8% to 15% and 20% to 35%, respectively, through 2026. The move seems to indicate more than just a standard safe-haven bid; it signifies a calculated reaction from institutions and investors to increasing geopolitical instability, a decelerating U.S. economy, persistent trade tensions, and the fast-paced shift towards de-dollarization. Mundada highlighted the anticipation of additional Federal Reserve interest rate cuts in 2026, alongside geopolitical turmoil and the trend of de-dollarization as central banks shift their reserves away from the U.S. dollar—”We are transitioning into a new, multipolar monetary era,” Mundada wrote.

U.S. President Donald Trump is currently considering a replacement for Fed Chair Jerome Powell. The front-runners include Kevin Hassett, alongside former Fed Governor Kevin Warsh. Both candidates are widely anticipated to implement significant rate cuts. “I want my new Fed chairman to lower interest rates if the market is doing well, not destroy the market for no reason whatsoever,” Trump posted. “I want to see a market that we haven’t experienced in many decades, one that rises on positive news and falls on negative news, as it should be, and as it once was.” In the meantime, various analysts have reiterated concerns regarding the U.S. dollar’s downturn, with certain voices taking a more extreme stance.

“King dollar’s reign is coming to an end,” gold bug Peter Schiff shared. “Gold will take the throne as the primary central bank reserve asset.” The implication is that the U.S. dollar is set to plummet against other fiat currencies, signaling the conclusion of America’s advantageous position on the global economic landscape. Brace yourselves for an unprecedented economic downturn. However, with the bitcoin price failing to climb alongside gold and silver in the last few months, others now see bitcoin as underpriced. “With U.S. equity markets extending gains and precious metals—such as gold, silver, and copper—recently posting record highs, signs of overheating are emerging across traditional risk assets,” Yuya Hasegawa wrote. “In light of current market conditions, bitcoin seems to be trading at a lower valuation, indicating that there may be opportunities for valuation-driven purchases.”