Bitcoin recently touched a record high exceeding $126,000 in October, yet it remains undervalued relative to gold based on historical correlations.
Bitcoin News
Gold and silver have posted remarkable gains throughout 2025, but veteran analysts suggest the rally may be losing steam. Nic Puckrin from Coin Bureau believes investors could soon shift their focus toward alternative store-of-value assets, with Bitcoin emerging as a prime candidate for capital rotation in the coming months.
The precious metals market has experienced extraordinary momentum this year. Gold climbed past $4,000 per ounce while silver reached a 45-year peak above $50 per ounce, driven by concerns over U.S. dollar debasement. Goldman Sachs projects gold could hit $4,900 per ounce by the end of 2026, but Puckrin argues this trajectory suggests the metal has become overheated following its 50% year-to-date surge.
Bitcoin recently touched a record high exceeding $126,000 in October, yet it remains undervalued relative to gold based on historical correlations. Puckrin noted that attention may now turn to other alternatives expressing similar views on inflation and currency devaluation. These include commodities, tokenized real assets, and Bitcoin, which all serve as hedges against fiat currency erosion and geopolitical uncertainty.
The U.S. dollar is experiencing its worst performance since 1973, declining over 10% year-to-date according to market analysts at the Kobeissi Letter. Since 2000, the dollar has lost 40% of its purchasing power, prompting a simultaneous rush into both safe-haven and risk assets. This unusual market behavior typically sees these asset classes moving in opposite directions.
Analysts suggest investors are repricing assets for a new era of monetary policy where inflation runs higher and governments finance operations through further currency devaluation. This environment causes all asset prices to rise as purchasing power deteriorates. The concurrent strength in both store-of-value assets and risk assets signals a fundamental shift in how markets view the economic landscape.
Matt Hougan, chief investment officer at Bitwise, believes Bitcoin is positioned for a strong Q4 rally as ongoing currency debasement drives investors toward safe-haven assets. As precious metals potentially cool from overheated levels, Bitcoin could attract significant inflows from investors seeking to preserve wealth through alternative stores of value that offer similar protection against monetary policy uncertainty.
The cryptocurrency hit its current all-time high alongside the historic surge in precious metals prices, demonstrating its growing correlation with traditional safe-haven assets. As confidence in the U.S. dollar continues to wane and investors seek alternatives, Bitcoin's relative undervaluation against gold presents a compelling opportunity for rotation. The coming quarter could prove pivotal for determining whether digital assets capture a larger share of safe-haven capital flows.
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