Precious Metals Surge While Bitcoin Lags as Investors Debate Crypto’s Next Catalyst

The precious metals rally shows no signs of slowing, while bitcoin and the broader crypto market continue to underperform, raising fresh questions about shifting investor sentiment. Gold climbed another 1.7% on Thursday to reach $4,930 per ounce, while silver jumped 3.7% to $96 per ounce, extending a powerful rally that has dominated markets over the past year. In contrast, bitcoin slipped back to just above $89,000, sitting nearly 30% below its all-time high reached in early October.

The divergence between bitcoin and gold has reignited debate about whether bitcoin’s long-term adoption narrative is losing momentum. Jim Bianco, head of Bianco Research, recently suggested that traditional adoption announcements are no longer driving price action, arguing that the market is waiting for a new catalyst. His comments reflect growing concern among some investors that bitcoin has stalled while other asset classes surge ahead.

Bloomberg senior ETF analyst Eric Balchunas pushed back, noting that bitcoin’s recent consolidation follows a massive multi-year rally. From the depths of the 2022 crypto winter, when prices dipped below $16,000, bitcoin surged to a peak of around $126,000 in October. According to Balchunas, a period of sideways trading is a natural pause after such explosive gains, not a sign of structural weakness.

Balchunas also highlighted profit-taking by early bitcoin holders as a key factor weighing on prices. He described the trend as bitcoin’s “silent IPO,” where long-term investors finally cash out after holding for a decade or more. One notable example included an investor who reportedly sold more than $9 billion worth of bitcoin in July after years of accumulation.

Bianco countered by pointing to relative performance since November 2024, shortly after President Trump’s election victory. Over that period, bitcoin is down 2.6%, while silver has surged 205%, gold is up 83%, and major equity indices like the Nasdaq and S&P 500 have posted strong gains. From his perspective, bitcoin has been left behind as other assets race ahead.

Balchunas, however, emphasized that metals may simply be catching up, reminding investors that bitcoin was up 122% year-over-year as recently as November 2024, significantly outperforming gold at the time.