TLDR
- Gold reached $4,000 per ounce while silver hit 45-year highs above $50, but analysts warn precious metals may be overheated after 50%+ gains
- Bitcoin could reach $644,000 if it captures half of gold’s market cap, according to VanEck research analysts
- US dollar faces worst annual performance since 1973, dropping 10% year-to-date and driving investors toward alternative assets
- Coin Bureau founder says Bitcoin remains undervalued compared to gold, positioning crypto for investor rotation
- Bitcoin hit record $126,000 in October as younger investors increasingly prefer digital assets over traditional precious metals
Gold prices climbed above $4,000 per ounce in 2025, marking a 50% gain this year. Silver also surged to 45-year highs above $50 per ounce as investors fled the weakening US dollar.
The precious metals rally may be losing momentum. Nic Puckrin from Coin Bureau says gold appears overheated after its massive run.
Bitcoin remains undervalued against gold according to multiple analysts. The cryptocurrency hit a record $126,000 in October but still trades below its potential relative to precious metals.
Goldman Sachs forecasts gold could reach $4,900 per ounce by end of 2026. This extended rally could push investors toward alternative inflation hedges like Bitcoin.
The US dollar is experiencing its worst year since 1973. The currency has dropped over 10% year-to-date and lost 40% of purchasing power since 2000.
Bitcoin Price Predictions Tied to Gold Performance
VanEck analysts predict Bitcoin could hit $644,000 in equivalent value. This projection assumes Bitcoin captures half of gold’s total market capitalization.
Matthew Sigel, VanEck’s head of digital asset research, based this forecast on current gold market performance. The upcoming Bitcoin halving event could accelerate price gains.
Joe Consorti from Bitcoin custodian Theya calculated Bitcoin’s fair value floor at $1.34 million. His analysis factors in gold’s recent price surge and Bitcoin’s growing adoption.
Peter Schiff offers a more conservative view. He argues Bitcoin needs to reach $148,000 to match its previous high when priced in gold terms.
Bitcoin and gold both serve as inflation hedges during economic uncertainty. The assets attract different investor groups but fulfill similar portfolio protection roles.
Investor Rotation from Precious Metals to Crypto
Puckrin expects money to flow from precious metals into Bitcoin and tokenized real assets. These alternatives offer similar protection against currency debasement.
Younger investors prefer Bitcoin over gold as a store of value. Surveys show growing crypto adoption among younger generations in emerging markets.
Matt Hougan from Bitwise predicts Bitcoin will surge in Q4. Ongoing dollar debasement is driving investors toward safe-haven assets to preserve wealth.
The Kobeissi Letter noted unusual market behavior. Both safe-haven assets and risk assets are rising simultaneously due to dollar weakness.
This pattern suggests investors are repricing assets for a new monetary policy era. Higher inflation expectations are driving all asset prices upward.
Bitcoin’s October all-time high coincided with precious metals reaching historic levels. This parallel movement demonstrates strong demand for alternative stores of value.
Market analysts say Bitcoin’s current valuation offers better upside potential than gold. The cryptocurrency’s limited supply makes it attractive during inflationary periods.
Bitcoin’s next halving event will reduce new supply entering the market. Historical patterns show price increases typically follow halving cycles.
Tokenized real-world assets are also gaining traction as gold alternatives. These digital assets combine blockchain technology with traditional investment vehicles.
