Bitcoin plummets …… gold and silver soar:
As an old player who has been in the crypto space for so long, I can see through the reasons behind the recent surge in gold and silver, and the plummet of $BTC Bitcoin.
Firstly, the current global geopolitical situation is chaotic, and the credibility of the US dollar is also weakening, with funds looking for genuine safe havens. Gold and silver are recognized as hard currencies for millennia, and during such times, they are certainly more appealing than Bitcoin's narrative of 'digital gold.' Many of my friends in the crypto space have liquidated their assets to pursue the certainty of precious metals, and with Bitcoin lacking new capital influx, it's no surprise that it is declining.
Secondly, the market has clearly returned Bitcoin to the camp of risk assets, rather than safe-haven assets. The core of the bull run in precious metals is the anxiety towards fiat currencies; under this sentiment, no one is willing to hold onto Bitcoin, a highly volatile asset, after all, the upward momentum of gold and silver is steadier and has stronger consensus.
Finally, the crypto space is also moving funds around internally. Now everyone is focused on AI computing power and the practical application of these sectors; the pure speculation on cryptocurrencies has long been diverted, and with Bitcoin as the leading asset in the market, it naturally gets dragged down.
In short, traditional safe-haven assets have seized the funds from $BTC Bitcoin, and coupled with the internal fund reallocations in the crypto space, this has led to such a differentiated market situation.
