Bitcoin Retreats Toward $89,000 While Gold Extends Winning Streak—What Experts Say

The cryptocurrency market is sending mixed signals as precious metals dominate headlines with their relentless rally. Bitcoin, meanwhile, has settled near $88,280 at the current moment, roughly 30% below its October peak. This divergence has sparked heated debate among top market analysts about whether crypto’s best growth story is fading or simply pausing for breath.

Precious Metals Rally Reaches New Heights

The precious metals complex put on an impressive show during recent trading, with gold climbing to $4,930 per ounce and silver advancing 3.7% to $96. These moves represent the continuation of a broader trend that has left many crypto advocates scratching their heads. Over the past 14 months since the Trump administration’s November 2024 election win, the comparison is particularly stark: silver has surged 205%, gold 83%, the Nasdaq 24%, and the S&P 500 17.6%—while Bitcoin sits essentially flat, down 2.6%.

For context, Bitcoin’s current price of approximately $88,280 translates to a monthly equivalent of roughly $7,357 if annualized. This modest performance stands in sharp contrast to where crypto advocates expected the market to be heading into 2025.

The Adoption Narrative Debate: Has Bitcoin Lost Its Edge?

Jim Bianco, head of Bianco Research, believes the industry may be facing a fundamental pivot. He argues that Bitcoin’s long-standing adoption story “is not working anymore,” suggesting market participants need to find a new compelling narrative before momentum can resume.

However, Bloomberg’s Eric Balchunas pushes back with historical perspective. He points out that Bitcoin climbed from below $16,000 during the 2022 crypto winter depths to October’s $126,000 peak—a 300% run in just 20 months. “What do you want? 200% annual gains with no breaks?” Balchunas asked rhetorically.

Rather than a broken adoption thesis, Balchunas attributes Bitcoin’s current pause to profit-taking by long-term holders—what he colorfully termed Bitcoin’s “silent IPO.” He noted that early investors holding for a decade or more have begun liquidating positions, including one notable instance where a holder sold over $9 billion worth of BTC in July 2025 to realize years of accumulated gains.

Bitcoin’s Monthly Weakness Masks Longer-Term Strength

While monthly data shows Bitcoin struggling—down about 2.6% since mid-November 2024—the broader context matters. Balchunas reminded observers that in November 2024 alone, Bitcoin delivered 122% year-over-year returns, significantly outperforming gold. The current weakness, he suggests, reflects metals “playing catch-up” after years of underperformance.

This creates an interesting paradox: investors simultaneously frustrated with Bitcoin’s near-term action and comfortable with its multi-year trajectory. The current price near $88,280 feels disappointing to those who witnessed the $126,000 peak, yet represents extraordinary appreciation for those with decade-long time horizons.

XRP Edges Higher Despite Broader Crypto Malaise

While Bitcoin consolidates, Ripple’s XRP token has shown modest resilience, posting a 1.23% gain over the past 30 days. More significantly, U.S.-listed spot XRP ETFs have attracted a net $91.72 million in inflows this month—bucking the trend of sustained withdrawals from Bitcoin ETFs. This suggests select segments of the crypto market are capturing fresh investor interest even as Bitcoin marks time.

The Divergence Signals Market Maturation

The split performance between legacy asset classes (precious metals) and cryptocurrencies hints at a maturing market where different narratives take turns leading. Gold and silver’s spectacular runs reflect inflation hedging demand and macro uncertainty. Bitcoin’s pause suggests the adoption tailwind has indeed slowed as mainstream institutional uptake plateaus.

Whether Bitcoin finds a fresh narrative as Bianco suggests, or whether the consolidation phase proves temporary as Balchunas implies, remains the central question for crypto investors navigating 2025.