Bitcoin Hovers Near $88,000 as Gold and Silver Rallies Exhibit Signs of Fatigue

Bitcoin Hovers Near $88,000 as Gold and Silver Rallies Exhibit Signs of Fatigue

Bitcoin lingered near $88,000 on Monday, showing limited upward momentum as investors grappled with broader economic uncertainties, while rallies in gold and silver displayed early indicators of potential slowdowns despite recent record highs.

Bitcoin’s Stagnant Performance

The leading cryptocurrency traded at approximately $88,071 as of late afternoon, reflecting a 1.24% decline over the past 24 hours and a broader stagnation that has persisted amid risk-off sentiment in global markets.

This comes as gold extended its surge past $5,000 per troy ounce, closing at $5,020.51, and silver advanced to $104.35, both fueled by safe-haven demand amid geopolitical tensions and currency debasement concerns.

Surge in Precious Metals

Analysts noted that precious metals have added substantial market capitalization in recent sessions, with silver’s value increase over the past three months exceeding Bitcoin’s entire $1.84 trillion market cap. Gold’s market cap has reached $35 trillion, underscoring a shift toward traditional assets as Bitcoin struggles to reclaim $90,000.

Liquidations and Market Wipeouts

A dip below $88,000 over the weekend triggered about $135 million in long liquidations across cryptocurrency markets, contributing to a total of $150 billion wiped out in recent sessions. Data from CoinGlass showed that long positions bore the brunt, with Bitcoin and Ethereum accounting for the majority of the $834 million in total crypto liquidations over the past 24 hours.

“Gold and silver casually adding an entire Bitcoin market cap in a single day,” observed one crypto analyst on social media, highlighting the disparity in performance. Discussions on platforms like X echoed this, with users suggesting capital is prioritizing “survival” in metals before potentially rotating back to riskier assets like Bitcoin once macroeconomic fears subside.

Signs of Rally Exhaustion

Signs of exhaustion in the precious metals rally are emerging, according to market watchers. Heraeus analysts pointed to silver’s high prices potentially curbing industrial demand, while gold’s advance shrugs off specific deals like those in Greenland but faces rally fatigue near record highs. The gold-silver ratio dropped to 44.09, its lowest since 2011, signaling possible overextension in silver’s parabolic rise.

Expert Insights

Peter Schiff, a vocal gold advocate, attributed Bitcoin’s underperformance to Wall Street’s risk aversion, treating it more as a high-beta asset than “digital gold” in the current environment. Other experts, including those at J.P. Morgan, forecast gold could push toward $6,000 longer-term but warn of limited upside before a potential turn.

Retail Trends and Correlations

Bitcoin’s monthly performance risks extending losses if it fails to break $90,000 soon, with correlations to gold rising to 0.63, suggesting it may lag until metals stabilize. Retail investors have piled into precious metals, with silver up 270% over 13 months compared to Bitcoin’s 11% decline, amplifying the market’s preference for traditional havens.

Driving Factors

Broader factors driving the metals surge include escalating global tensions, a weakening U.S. dollar and central bank diversification away from fiat currencies. Bitcoin, however, has seen $46.7 billion in ETF inflows in 2025, positioning it for potential recovery if capital rotates as seen in past cycles, such as 2020 when gold peaked before Bitcoin’s 500% run.

Market Caution and Watch Levels

Market participants remain cautious, with Bitcoin’s open interest contracting and whales leaning neutral. Key levels to watch include $87,500 support for Bitcoin and stabilization in gold around $5,000, which could signal the next phase in asset rotations.