While the price of gold reaches historic highs, Bitcoin stagnates with weak performance

Alternative asset markets experienced contradictory movements on Thursday. While the gold price continued its upward trajectory, consolidating as a safe haven for investors, bitcoin showed clear operational weakness, sparking debate among analysts about the prospects of the largest crypto asset.

Precious metals lead the rise while bitcoin retreats

In the US afternoon session, precious metals hit new milestones. Gold rose an additional 1.7%, approaching $4,930 per troy ounce, while silver advanced a notable 3.7% to reach $96 per ounce. These movements reflect the sustained strength of precious metals as protective instruments in uncertain times.

In contrast, bitcoin experienced another decline, retreating to around $88,050 (according to current data as of January 29, 2026). This figure represents approximately a 30% drop from its all-time high of $126,000 recorded in October. The crypto market overall remains stagnant, showing no signs of immediate recovery.

The performance divergence between gold and bitcoin has raised questions about the robustness of the bullish narrative for cryptocurrencies. In the last 14 months since President Trump’s electoral victory in November 2024, the numbers speak for themselves: bitcoin declined 2.6%, while silver increased 205%, gold 83%, Nasdaq 24%, and the S&P 500 17.6%.

Bitcoin adoption narrative loses traction, according to experts

Jim Bianco, director of Bianco Research, questioned the sustainability of the widespread adoption argument for bitcoin. “Adoption announcements no longer generate impact,” Bianco stated on social media, suggesting that the market needs a new catalyst that is not yet evident.

According to his analysis, bitcoin performs as the worst-performing asset within a diversified portfolio that includes precious metals, tech indices, and broad market indices. This situation starkly contrasts with the previous period, when bitcoin had dominated returns.

Gold price analysis versus cryptocurrency performance

Eric Balchunas, senior ETF analyst at Bloomberg, offered a different perspective. He pointed out that bitcoin is in a consolidation phase after an extraordinary bullish run: from less than $16,000 at the bottom of the 2022 crypto winter to its peak of $126,000 in October, representing a gain of approximately 300% in 20 months.

Balchunas attributed part of the recent weakness to profit-taking by early investors. He mentioned the example of a Satoshi-era investor who sold over $9 billion in bitcoin in July 2025 after holding their position for more than a decade. This phenomenon, which he called the “quiet public operation” of bitcoin, reflects the natural behavior of those seeking to realize years of gains.

However, Balchunas recalled that in November 2024, bitcoin had returned 122% year-over-year, significantly outperforming gold during that period. In his view, precious metals are simply reaching valuation levels that had previously lagged behind. The central question remains: if bitcoin requires sustained returns of 200% annually without interruptions, or if it is in a natural consolidation phase after extraordinary gains in the previous cycle.