As of January 2026, Bitcoin (BTC) has fallen below 20 ounces in gold terms, marking a significant decline amid precious metals achieving new all-time highs. Investment analyst Karel Mercx from Beleggers Belangen has pointed out that Bitcoin is no longer seen as a viable option for investors seeking refuge from fiat currency dilution, a concept known as the "debasement trade." He stated that the demand for gold and silver is overshadowing that for Bitcoin, which is currently trading 20% below its peak.
Amidst the shifting market dynamics, gold and silver are experiencing substantial price discovery while Bitcoin struggles to regain momentum. Mercx emphasized that the narrative favoring Bitcoin as an alternative to traditional hard assets is "broken," with investors preferring physical metals over digital currencies. He described the situation as a clear indication that the focus has shifted to gold and silver as the true safe havens.
Crypto enthusiasts are increasingly concerned about Bitcoin's future, as pressures mount for a market rebound. Analyst Michaël van de Poppe noted that the current trends in the cryptocurrency market are critical, especially with gold and silver reaching record highs. The performance of gold against the S&P 500 has been highlighted as a key factor in determining future market movements.