Bitaigen Research January 23 – Spot gold was hovering around $4,956 per ounce, moving only modestly, while silver was closing in on the $100 per ounce milestone, quoted at $98.79. Both metals posted fresh all‑time highs. At the same time, Bitcoin’s price oscillated around $90,000, failing to follow the strong upward trend seen in the precious metals.
In this article we outline the macro‑economic backdrop that pushed gold and silver to record levels and provide an objective dissection of Bitcoin’s recent performance. By analysing multiple dimensions, we aim to help readers determine whether “digital gold” is truly lagging behind traditional precious metals. The following sections present key data points and possible market trajectories – a thorough read is recommended.
Deep Drivers Behind Continued Record Highs for Gold and Silver
Since gold broke $2,600 in January 2025, the market has climbed steadily, accumulating nearly a 100 % gain by the 23rd of this month.
Silver, often described as “gold’s volatile companion,” started its upward march from $30 in April 2025 and has maintained a rising trajectory, delivering a cumulative gain of over 300 %.
Central‑bank gold purchases remain a major catalyst. In 2025 the People’s Bank of China added 27 tons of gold to its reserves, while the Reserve Bank of India raised its gold‑holding ratio from 10 % to 16 %. The moves reflect both the allure of rising gold prices and a desire to diversify away from U.S. Treasury exposure. With U.S. sovereign debt surpassing $36 trillion, the de‑dollarisation trend has positioned gold as a preferred hedge against currency depreciation.
Escalating geopolitical risks further stimulate demand. U.S. threats to levy tariffs on Greenland and renewed sanctions on Iran have prompted a global flight to safety, pushing gold above $4,800. The U.S. Dollar Index slipped roughly 6 % in 2025, making dollar‑denominated precious metals more attractive to overseas buyers.
Federal Reserve independence under pressure, credit concerns deepen. Recent criminal investigations into the Fed Chair have cast unprecedented doubt on the central bank’s autonomy as the world’s “last line of monetary defense.” Investors are increasingly wary that the Fed could become a political tool, eroding long‑term confidence in the U.S. dollar.
ETF holdings and central‑bank gold buying continue to net increase. Even as gold flirted with the $5,000 threshold, global exchange‑traded fund (ETF) positions and sovereign gold reserves kept climbing, indicating a market mindset that has shifted from “is the price too high?” to “are fiat currencies becoming too cheap?”
Industrial demand provides extra support for silver. Since 2021, silver supply shortages have become evident, with mine output roughly flat while demand from solar panels, electronics and AI‑related infrastructure has surged. China’s export restrictions, effective from January 1 2026, have tightened supply further. Analysts estimate an annual shortfall of 200–300 million ounces, with industrial consumption accounting for about 50 % of total supply. In the later stages of a precious‑metal bull market, silver—being a smaller market with higher elasticity—often experiences a more aggressive catch‑up rally. The gold‑to‑silver ratio is now reverting to levels below its historical average.
Industry viewpoint – Economist Hong Hao notes that as long as expectations of improved global liquidity persist, silver’s upward cycle remains unfinished. Although its price swings are likely to be markedly larger than gold’s, the “essential industrial commodity” characteristic supplies a solid value foundation.
Behind Bitcoin’s Slump
After hitting an all‑time high of $126,000 in 2025, Bitcoin has since consolidated around the $90,000 region. Data from Glassnode shows that the spot price has slipped below the 75th percentile of supply‑cost levels, indicating rising distribution pressure. If Bitcoin cannot reclaim this cost line, the broader market may stay under pressure.
Liquidity tightening is the primary driver. Since the Federal Reserve began quantitative tightening (QT) in 2022, it has withdrawn roughly $1.5 trillion of liquidity, dampening speculative inflows into high‑risk assets such as Bitcoin. A $19 billion leveraged unwind in October amplified a cascade of liquidations. While geopolitical tensions have buoyed gold, they have simultaneously heightened risk‑off sentiment within the crypto space.
A cyclical rotation perspective. Although Bitcoin has underperformed gold and silver since last year, its absolute return remains impressive: the price rose from $15,000 to $126,000, a gain of over 800 %, which is still noteworthy.
Wintermute’s latest observation. The firm points out that after breaking out of a narrow 50‑day range, Bitcoin is entering an upward channel. Since November, real (non‑leveraged) inflows have begun to push the price above the range, ETF demand is reviving, and an inflationary environment continues to support crypto assets. Last week’s sharp pull‑back is viewed as a healthy technical correction; leveraged positions were cleared quickly, preventing a vicious cycle and serving as a positive signal. The current critical factor is whether the ongoing tariff dispute will evolve into concrete policy. If it remains merely rhetorical, U.S. equities, the dollar and interest‑rate trajectories are likely to stay on their present paths.
Key short‑term outlook. Should Bitcoin hold above $90,000 this week and keep attracting ETF inflows, bullish momentum could persist. Conversely, a decisive sell‑off breaking below $90,000 would re‑establish the November‑originated range as a resistance barrier.
That concludes the full content of “Gold and Silver Reach New All‑Time Highs – Is ‘Digital Gold’ Bitcoin Really Being Left Behind? A Simple Analysis.” For more Bitcoin market insights, please refer to previous Bitaigen (比特根) articles or continue reading the related reports below. We appreciate your ongoing support!
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