Metals are hot, and Bitcoin’s not, much to the chagrin of the crypto sector. Silver peaked above a record-high $120 per ounce in the early hours of trading on Thursday, and gold also rose to a record price of about $5,600. Meanwhile, Bitcoin is down below $85,000, plummeting about 33% since its all-time high in October, according to data from Binance.
This trend comes as investors are hedging against a weakening dollar and pivoting away from traditional assets. This is supposed to benefit Bitcoin, but metals have been pocketing the gains. Several macroeconomic factors have led to risk-off purchases, including rates staying steady in the U.S. on Wednesday, and President Trump pressuring Iran this week to negotiate its nuclear deal, threatening another strike on the country.
“Silver has scarcity and industrial utility driving demand, while Bitcoin is being treated as a risk asset without a compelling new catalyst,” said Jake Ostrovskis, Head of OTC at Wintermute.
Silver’s success has also sparked a hand-wringing on social media where users are posting sardonic memes about Bitcoin’s stumbles. One tweet read, “when you were right about currency debasement but bought Bitcoin instead of gold, silver, or copper.”
