Concerns About Bitcoin’s Performance as Gold Hits Record Highs

On December 22, gold prices soared past $4,400 per ounce, reaching an all-time high. In stark contrast, Bitcoin (BTC) sits 29.5% below its peak. The disappointing performance of Bitcoin compared to gold has raised worries among analysts about a possible downturn for speculative assets.

Key Takeaways

Gold hit a new high of over $4,400 per ounce, while Bitcoin remains significantly below its peak.
Precious metals like silver and platinum have shown strong performance, in stark contrast to Bitcoin.
Bitcoin's underperformance raises concerns about a broader market downturn for speculative assets.
The Bitcoin-to-gold ratio may indicate potential risks for Bitcoin if stock markets falter.
Some analysts believe Bitcoin could recover as capital rotates from precious metals back into cryptocurrencies.

Gold and Precious Metals Continue to Surge

Gold has maintained its upward momentum, hitting a record high of $4,409 during early Asian trading sessions. As of now, the price has adjusted to $4,403 per ounce, while gold futures touched $4,415 per ounce.

This bullish trend isn't limited to gold alone; other precious metals have also seen significant price increases. Silver, for example, surged to an impressive $69.4 per ounce.

“The daily record highs of silver reflect a +140% increase in 2025 alone. At this point, technical analysis takes a back seat, with eight consecutive months of gains,” noted The Kobeissi Letter.

Platinum has also rallied, reaching its highest price in several years and is currently just 4.5% away from its all-time peak. Analyst Mario Nawfal mentioned, “The price has surged above $2,040 per ounce. This upward trend is supported by strong momentum, indicating a potential breakout rather than just a temporary spike. After lagging behind gold and silver for an extended period, platinum is catching up, revealing renewed interest in these metals and suggesting a shift towards undervalued commodities.”

Bitcoin Struggles While Gold and Silver Shine

In stark contrast, Bitcoin has struggled to perform as well. Over the past day, the leading cryptocurrency managed a small gain of about 0.89%, trading at $88,890—still a significant 29.5% below its all-time high. This has caused challenges for long-term holders, as profits continue to fall.

Overall, Bitcoin is down nearly 5% for the year. Comparatively, traditional assets have seen robust gains, with silver skyrocketing 138% and gold climbing nearly 68% in the same timeframe. Market strategist Charlie Bilello pointed out that since the first Bitcoin ETF launched in January 2024, gold has outperformed Bitcoin by 19%.

Economist Peter Schiff remarked, “Bitcoin is deterring many people from investing in gold or silver. It’s unfortunate that they might end up losing significant amounts of money in Bitcoin instead of capitalizing on the precious metals market.”

Equities have also outperformed Bitcoin this year, with the Nasdaq increasing by 20.8%, the S&P 500 by 16.4%, and the Russell 2000 by 13.4%. A market observer noted that gold's new all-time highs heading into the year's end indicate that investors are prioritizing capital protection while selectively investing in riskier assets. According to this analyst, when gold rises alongside equities, it usually reflects cautious optimism, which may explain why Bitcoin has remained stagnant instead of making significant gains.

Warning Signs from the Bitcoin-to-Gold Ratio

Bitcoin’s ongoing underperformance could have wider implications beyond market sentiment. Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, pointed to the Bitcoin-to-gold ratio as an important indicator. He stated,

“If the S&P 500 experiences its third down year since 2008 in 2026, the ounces of the traditional store of value equal to the speculative digital asset will be recognized as a leading indicator.”

According to McGlone, the Bitcoin-to-gold ratio is currently close to a critical technical support level of around 20x, based on December 19 charts.

“What keeps this ratio from approaching its historical average of about 5x? The fact that Bitcoin/gold has remained unchanged since 2020 and has declined despite a resilient stock market may suggest a potential end for high-risk assets. Historically, rising Bitcoin/gold ratios relied on increasing equity prices. I believe this leading indicator indicates some impending deflation, which could put additional pressure on stock prices to continue rising,” McGlone added.

However, some market participants are taking a more optimistic stance on Bitcoin’s future. One analyst suggested that gold might be overvalued, indicating that capital could eventually shift from precious metals back into Bitcoin.

“Currently, BTC/XAU has dropped to around 20 ounces of gold, the lowest level since early 2024. The weekly RSI (Relative Strength Index) is at 29.5, which is nearing three-year lows, traditionally signifying long-term bottoms for BTC compared to gold. There are signs of a potential bullish divergence, implying a short-term rebound as gold seems overpriced and Bitcoin appears undervalued,” explained Web3 Vibes.

It remains uncertain if Bitcoin will be able to close the gap with gold. The coming months will reveal whether McGlone’s concerns come to fruition or if investor appetite for speculative assets rebounds. For now, gold holds a commanding lead over its digital counterpart.