Gold and Silver Bulls Taunt Bitcoin Investors as Precious Metals Go Parabolic

• In 2025, precious metals have significantly outperformed cryptocurrencies, with Gold (GC=F) rising almost 70% to above $4,552 per ounce and Silver (SI=F) gaining 150% to $77.19 per ounce, while Bitcoin (BTC-USD) is down roughly 7% and Ether (ETH-USD) has declined 12.48%.
• The strength in metals is driven by central bank purchases, industrial demand, and physical supply concerns, contrasting with Bitcoin’s 30% drop from its $126,198 October peak amid long-term holder sales, liquidations, and year-end tax-loss harvesting.
• Analysts highlight gold’s advantages in volatility and liquidity, with some anticipating a potential bitcoin rebound in January despite revised lower price targets from institutions like Standard Chartered.

In 2025, precious metals have delivered exceptional returns, markedly outperforming cryptocurrencies amid shifting investor preferences toward tangible assets with established monetary and industrial roles. Gold futures (GC=F) have surged, trading above $4,552 per ounce near year-end while setting more than 50 record highs throughout the period, reflecting gains of almost 70%. This performance stems from sustained central bank accumulation, which provides a reliable bid even in varied economic conditions, alongside reduced interest rates that lower the opportunity cost of holding non-yielding assets.

Silver (SI=F) has posted even stronger results, advancing over $77 per ounce and achieving year-to-date gains of 150% in a rapid upward move fueled by reports of physical supply constraints coinciding with heightened industrial consumption in sectors such as electronics and renewable energy. Platinum (PL=F) and copper (HG=F) have similarly reached new peaks, $2,491.10 and $5.8395 respectively, underscoring broad strength across industrial and precious metals driven by global demand dynamics.

In contrast, major cryptocurrencies have faced declines, with Bitcoin (BTC-USD) down 7.10% for the year and Ether (ETH-USD) showing a 12.5% loss. Bitcoin has fallen approximately 30% from its $126,198 October peak to just over $87K, marking its first decoupling from equity markets since 2014 despite supportive regulatory developments and growing institutional participation on Wall Street. This weakness follows sales by long-term holders and cascading liquidations that pressured prices downward.

Market observers have highlighted this disparity. Louis Navellier, founder of Navellier & Associates, tells YF that with gold up almost 70% while most cryptocurrencies remain negative, investors in digital assets should consider reallocating to gold, citing advantages in central bank demand, lower price volatility, and superior market liquidity. Gold bull Peter Schiff has again questioned Bitcoin’s upside potential, noting its failure to advance alongside rising technology equities or precious metals.

Analysts attribute Bitcoin’s recent consolidation to year-end tax-loss harvesting and reluctance among traders to add exposure to an underperforming asset class during low-volume holiday periods. Fundstrat’s Sean Farrell has described the tight trading range as typical for December, where investors sell declining positions and favor established winners. However, he anticipates potential for recovery in January, supported by expected inflows as participants incorporate Bitcoin into long-term allocations. Historical patterns indicate that a red December has often preceded positive January performance, though three consecutive monthly losses for Bitcoin remain infrequent, occurring only 15 times previously.

Crypto research firm 10X Research has identified conditions conducive to a near-term rebound, including a 30% drawdown, a 2.5-month contraction, and oversold technical signals. Meanwhile, Wall Street firms have tempered expectations, with Standard Chartered lowering its year-end Bitcoin target to $100K from $200K and its 2026 projection to $150K from $300K, reflecting moderated assumptions on inflow momentum.

Overall, the year’s results illustrate a clear rotation toward precious metals, where fundamental drivers such as official sector buying and industrial usage have propelled gains, while cryptocurrencies contend with heightened volatility and positioning adjustments in a maturing market environment.

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