Capital shifts toward precious metals amid geopolitical tension and currency debasement concerns
Bitcoin and the broader crypto market came under renewed pressure following the Christmas holiday, as risk-off sentiment returned to U.S. trading hours. While digital assets slid, precious metals surged to fresh all-time highs, signaling a notable shift in where investors are seeking protection and returns.
Bitcoin and Crypto Assets Retreat After Holiday Rally
Bitcoin briefly traded near $89,000 during overnight sessions before reversing sharply as U.S. markets opened, falling below $87,000. Over the past 24 hours, Bitcoin declined roughly 1.6%, while Ether slipped by a similar margin. Other major tokens underperformed, with several large-cap altcoins posting losses between 3% and 5%, underscoring continued weakness in crypto market momentum.
Crypto-related equities mirrored the downturn. Shares tied to exchanges, infrastructure providers, and blockchain-focused firms moved lower, while Bitcoin mining stocks were hit the hardest, with many falling more than 5% in early trading. Even miners that have diversified into AI and data center services failed to escape the sell-off.In contrast, gold, silver, platinum, palladium, and copper all reached record levels. Gold climbed above $4,570 per ounce, while platinum and palladium surged by double digits. Silver and copper posted gains of approximately 5%, reinforcing metals’ role as beneficiaries of the debasement trade.
Rising geopolitical tensions added to the momentum in metals markets. Recent military actions and sanctions-related developments have increased uncertainty, encouraging capital to flow into traditional stores of value rather than speculative assets.
The post-holiday session highlighted a clear divergence: metals attracting defensive capital while crypto assets struggle to regain footing. As macro uncertainty and geopolitical risk persist, investor preference appears to be shifting decisively toward tangible, inflation-resistant assets over digital alternatives.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.