Bitcoin Hits 2-Year Low Against Gold at 20 Ounces


$BTC has dropped to its weakest level relative to gold in two years, slipping below 20 ounces as precious metals reach fresh record highs. Investment analysis suggests cryptocurrency has lost the competition to become the primary hedge against currency debasement.


Monday trading saw gold and silver hit new all-time peaks while #Bitcoin remained stuck approximately 20% beneath its own high. The divergence occurred as markets reacted to U.S. government moves involving Federal Reserve Chair Jerome Powell.


Karel Mercx, who specializes in investments at Dutch firm Beleggers Belangen, declared that capital flows clearly favor traditional hard assets over digital alternatives. Investors are choosing the original form of hard money rather than #blockchain-based experiments when seeking protection from fiat currency expansion.


The comparison between $BTC and #gold shows declining relative performance through successive market cycles. Bitcoin experienced its first four-year decline when measured in precious metal terms as of September 2025, contradicting expectations around predictable cycle patterns.


Mercx stated the verdict is settled regarding which asset serves as the debasement trade. Despite Bitcoin's digital gold narrative, actual money movement demonstrates demand for physical bullion during periods of monetary policy uncertainty.


#Crypto analyst Benjamin Cowen identified the gold versus S&P 500 chart as critically important for current markets. Should the S&P 500 break down against gold, the investment landscape that dominated the previous decade would undergo a fundamental transformation.


Trader Michaël van de Poppe acknowledged mounting pressure for #cryptocurrency markets to reverse recent weakness. The window for digital assets to recover lost ground against traditional safe-haven investments may be narrowing.

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January 12, 2026 at 11:55 PM
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