Investors in gold (GC=F) and silver (SI=F) are celebrating this year as cryptocurrency bulls are left behind. Gold futures hit over $4,550 on Friday, hovering at or close to record highs, capping a year that saw over 50 such records.
In a parabolic run sparked by worries about physical shortages amid a period of strong industrial demand, silver also surged over $75 per ounce, bringing its year-to-date gains to 150%. Copper (HG=F) and platinum (PL=F) have also reached all-time highs this year.
A leg lower in bitcoin (BTC-USD), down about 6% so far this year, has spurred some investors to quickly point out the gap between the commodities business and cryptocurrencies.
Additionally, Ether (ETH-USD) is expected to lose 12% annually. The founder of Navellier & Associates, Louis Navellier, stated earlier this week that "the time has come for the crypto crowd to switch to gold, with gold now up almost 70% in 2025 and most cryptocurrencies negative."
When compared to cryptocurrencies, Navellier notes that the gold market has better liquidity, reduced volatility, and central bank purchases.
On X, gold bull and infamous cryptocurrency critic Peter Schiff said, "If Bitcoin won't rise when tech stocks rise, and it won't rise when gold and silver rise, when will it go up? It won't, is the response.
The metals ascent to record highs coincides with the fact that cryptocurrency is expected to finish the year in negative territory, with bitcoin attempting to avoid a third consecutive month of losses.
Despite a positive legal climate and growing use of cryptocurrencies on Wall Street, the largest cryptocurrency in the world has separated from stocks for the first time since 2014.
After long-term holders sold, the token has had difficulty recovering, and forced liquidations caused prices to drop by about 30%, from record highs of almost $126,000 in October to just over $87,000 on Friday.
Sean Farrell, head of digital assets at Fundstrat, stated that he is not shocked that bitcoin has been trading in a narrow range lately. In a client video earlier this week, Farrell stated, "Santa rallies are normally characterised by folks selling losers, buying winners into the year-end."
"I just think a lot of folks are not stepping in here to put on a lot of risk in an asset that has underperformed for the better part of the last couple of months," he stated.
The strategist stated that he thinks there is a strong setup for a January comeback since more investors are anticipated to add bitcoin to their long-term portfolios.
"Assuming that December closes red history does suggest that January will be green," Farrell stated. There have only been 15 instances of bitcoin closing lower for three consecutive months, so this would be an uncommon occurrence.
Additionally, 10X Research, a cryptocurrency research organisation, stated that a short-term bitcoin bounce might be imminent."
This may be an opportune moment to attempt a more durable rebound, as the ingredients for one are finally in place: a 30% correction, a 2.5-month decline, and technical indicators that have fully reset," according to a note released by the company on Friday.
Standard Chartered has lowered its year-end bitcoin price prediction from $200,000 to $100,000. Meanwhile, Wall Street analysts have lowered their price targets. Geoff Kendrick, the company's head of digital assets, likewise cut his 2026 goal from $300,000 to $150,000.
