Gold and silver reaching new highs again is being framed as a liquidity signal rather than a risk-off warning.
Bitcoin is trading near $87,000 in late December 2025 after sliding by over 30% from its October peak above $126,000, while gold and silver continue to post record-breaking gains. However, some analysts are arguing that this divergence is not a warning sign but a familiar setup that previously led to one of Bitcoin’s strongest rallies.
According to this view, the current pause in BTC mirrors mid-2020, when precious metals rallied first after a major market shock, before capital rotated into crypto months later with dramatic results.Back then, heavy central bank liquidity flowed first into gold and silver, with gold climbing from about $1,450 to $2,075 by August 2020, while silver jumped from roughly $12 to $29. On its part, Bitcoin stayed range-bound around $9,000 to $12,000 for nearly five months before breaking to $64,800 in Q2 2021, a 440% jump in price from its August 2020 level. Fast forward to 2025, and precious metals are once again setting the pace. Gold recently reached a new all-time high of around $4,550, while silver climbed to a new peak of its own below $84 hours ago, after an explosive final quarter. Bitcoin, by contrast, is still stuck below $90,000 as it tries to shrug off the effects of the October 10 liquidation event thatBull Theory argued that the metals moving first have historically signaled that risk assets are next, not that the cycle is ending. The analyst also noted that, unlike 2020, multiple tailwinds could line up in 2026, including continued rate cuts, renewed liquidity injections, looser bank leverage rules, clearer crypto regulation, and broader ETF access beyond Bitcoin.Why 2026 Could Be a Dream Year for Investors: And Where Bitcoin Fits In?At the time of writing, Bitcoin was trading at just under $90,000, up about 2% on the day but down nearly 6% year-to-date. Over the past week, price action has been tight, moving between the high $86,000s and just above $90,000, with low momentum across shorter timeframes. Monthly performance remains slightly negative, reflecting hesitation rather than panic. This muted movement contrasts sharply with the broader metals market, where gold is up roughly 75% this year, and silver hasmore than 170%. That gap has pushed BTC-to-gold and BTC-to-silver ratios to multi-year lows, feeding the argument that Bitcoin looks undervalued on a relative basis. If the 2020 playbook repeats and metals stall while liquidity rotates, Bull Theory estimates Bitcoin could rise more than fourfold into 2026. “The current sideways action in BTC is not the start of the bear market, but rather a calm before the storm,” the market watcher noted.Wayne is a dynamic part-time trader with an impressive eye for detail. His passion for understanding financial systems has led to an intriguing interest in blockchain technology, and he enjoys exploring and writing about cryptocurrencies. Possessing a keen intellect and diligent work ethic, he stays up-to-date on the latest industry trends, regularly sharing his insights in articles and professional presentations.Play Video
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bitcoin ‘never’ hit $100K in real terms, SEC’s crypto ‘dream team’: Hodler’s Digest, Dec. 21A crypto analyst says Bitcoin's current market setup resembles that of 2019, SEC picks a crypto regulation 'dream team': Hodler's Digest
Read more »
Bitcoin outperformed gold and silver over the last 10 years: AnalystThe most recent news about crypto industry at Cointelegraph. Latest news about bitcoin, ethereum, blockchain, mining, cryptocurrency prices and more
Read more »
There Is No XRP Supply Shock, Top Analyst SaysXRP liquidity is deeper than it appears on the surface, meaning that there is no supply shock.
Read more »
Hamas Rebuilding Military and Regrouping in Gaza, Analyst SaysFollowing the ceasefire with Israel, Hamas is using the pause in fighting to rebuild its military infrastructure, restore leadership, and recruit new fighters, according to a national security analyst. The analyst warns of full freedom of movement for Hamas and highlights the rebuilding efforts across Gaza.
Read more »
Bitcoin's $90,000 Hurdle: Demand Dip Threatens Year-End RallyBitcoin's attempt to break past $90,000 faces headwinds as demand wanes, particularly among US investors. Negative apparent demand and a declining Coinbase Premium Index suggest a risk-off sentiment. Technical analysis points to a potential rally toward $122,000 if the $90,000 resistance is breached.
Read more »
Eagles favored over Commanders in Week 18; Super Bowl odds take a dip despite winThe Eagles are favored by more than a touchdown Sunday against the Commanders. But what about their odds of repeating as Super Bowl champions?
Read more »