Precious metals have increased by 70%-150%, while Bitcoin has fallen 6% this year.

2025-12-31 01:27:00

Source: Yellow Original Title: Precious Metals Rise Between 70% and 150% While Bitcoin Retreats with an Annual Loss of 6%

Original Link: Precious metals are expected to significantly surpass Bitcoin in 2025, with investors choosing gold and silver as hedges against currency devaluation.

Gold has risen approximately 71% so far, and silver has surged about 159%.

Meanwhile, Bitcoin has declined about 6%.

This divergence contradicts early 2025 forecasts, which predicted Bitcoin would benefit from “currency devaluation operations,” an investment strategy using store-of-value assets to defend against fiat currency erosion.

What’s Happening

Gold recorded its best annual performance since 1979, trading above $4,500 per ounce.

The metal has maintained above its 200-day moving average for about 550 consecutive trading days, the second-longest streak on record, only behind approximately 750 trading days following the 2008 financial crisis.

Silver hit a new all-time high, exceeding $72 per ounce, driven by demand from solar panels, electric vehicles, and the semiconductor industry, coupled with ongoing supply shortages.

Bitcoin hit a record high of $126,200 on October 6 but has since retraced significantly.

The cryptocurrency is currently trading around $87,400, down about 30% from its peak.

Why It Matters

Global central banks continue to increase gold reserves in 2025, with emerging and developed markets clearly positioning the metal as a neutral reserve asset amid geopolitical fragmentation.

Expected declines in real interest rates and a weakening dollar reduce the opportunity cost of holding non-yielding precious metals.

Despite Bitcoin’s poor performance, cryptocurrency analysts expect the asset to catch up with gold in 2026.

Re7 Capital portfolio manager Lewis Harland told CoinDesk that gold is about 26 weeks ahead of Bitcoin.

The renewed strength of the metal reflects increasing market incorporation of expectations for greater currency devaluation and fiscal tightening in 2026, which historically favors both assets, with Bitcoin exhibiting higher volatility.

Polymarket traders assign a 40% probability that Bitcoin will be the best-performing asset in 2026, compared to 33% for gold and 25% for stocks.

BTC1,09%

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