Jan 31, 2026
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BEARISH 📉 : Bitcoin loses ground to gold as a store of value
Bitcoin, initially designed as digital gold and a hedge against inflation and currency debasement, is facing challenges in fulfilling this role. As de-dollarisation gains momentum, investors are turning to traditional assets like gold, which has seen substantial growth compared to Bitcoin.
Current Market Dynamics
- Gold increased by approximately 55% and silver by around 150% over the past year, while BTC remained stable.
- Central banks prefer less volatile and controllable monetary infrastructures, leading to record-high gold purchases.
- Recent market fluctuations saw gold hit $5,600 before dropping to $5,140 due to margin liquidation.
- Microsoft experienced an 11.7% decline as tech companies liquidated gold holdings for liquidity.
Crypto investor Himanshu Sinha suggests that as Western sanctions and financial controls increase, the need for a neutral exit becomes critical, with gold emerging as a preferred alternative.
Gold vs. Bitcoin: Performance Predictions
- Analyst Doctor Profit highlights a trading pattern where specific BTC-to-gold ratios indicate market tops and bottoms.
- The ratio analysis suggests a BTC bottom between $50,000 and $60,000 if calculated with gold priced at $7,000.
- Doctor Profit predicts continued outperformance of gold over Bitcoin in the upcoming months.