Gold and silver hit new all-time highs again: Should investors shift from Bitcoin to gold?

December 29, 2025, international silver futures prices experienced significant volatility after breaking through the $80 per ounce level for the first time, reaching as high as $83 per ounce, an increase of over 175% compared to the beginning of the year. Meanwhile, gold prices also hit a historic high, with spot gold approaching $4,550 per ounce.

At the same time, the much-anticipated “digital gold” Bitcoin showed weakness, trading at $87,817, down 6.25% year-to-date.

01 Market Fluctuations

The precious metals market surged dramatically at the end of 2025, with gold, silver, and platinum all reaching record highs. Spot gold once neared $4,550 per ounce, with an annual increase of 72.69%.

Silver performed even more impressively, breaking through the $80 mark for the first time. The weekly gain exceeded 10%, and the total annual increase reached 173.72%. This rally adjusted on December 29, with silver falling back to $74.75 per ounce, down 5.51% from the previous day.

In stark contrast, the overall sentiment in the cryptocurrency market remained subdued. Bitcoin declined 6.25% this year, and Ethereum fell 12%. The Fear & Greed Index shows the market in a “fear” state, with a score of 20.

02 Market Drivers

Multiple factors have driven the strong performance of gold and silver this year. Expectations of Federal Reserve rate cuts are a primary catalyst, as lower interest rates increase the appeal of non-yielding precious metals.

Meanwhile, geopolitical risks have intensified, prompting investors to seek traditional safe-haven assets. U.S. President Trump’s tariffs and international developments have added to market uncertainty.

From a supply and demand perspective, central banks’ continued gold purchases have provided solid support for the gold market, while silver faces supply-side challenges. A short squeeze in October led to tight supply conditions.

03 Diverging Views

As the precious metals market soars and the cryptocurrency market remains weak, there is a clear divergence in asset allocation strategies among investors.

Louis Navellier, founder of investment advisory firm Navellier & Associates, publicly called for cryptocurrency investors to shift toward gold. He highlighted several advantages of gold: ongoing central bank purchases, lower volatility, and improved liquidity.

Famous investor Peter Schiff expressed a more pointed view on social media: “If Bitcoin doesn’t rise when tech stocks go up, and doesn’t rise when gold and silver go up, then it may never go up.”

However, some crypto analysts believe a turning point may be near. Sean Farrell, head of digital assets at Fundstrat, noted that cryptocurrencies might rebound in January, as the seasonal pattern of selling at year-end for losses and buying profitable assets comes to an end.

04 Strategic Analysis

The current market environment presents significant challenges for investors. For cryptocurrency holders, deciding whether to adjust positions or increase holdings in traditional precious metals is a key decision.

Gold and silver’s strong performance is supported by solid fundamentals, but short-term technical adjustments cannot be ignored. Silver, after reaching a historic high of $81.82, has entered an overbought zone.

Zhonghui Futures warns that silver is now in a serious overbought condition, and may quickly correct to release pressure or consolidate sideways at high levels to gradually digest gains.

For crypto investors, despite Bitcoin’s short-term weakness, some analysts see potential buying opportunities on dips. Sean Farrell from Fundstrat stated that after a 30% correction, Bitcoin’s technical indicators have fully reset, possibly leading to a short-term rebound.

05 Asset Performance Comparison

The table below summarizes the performance of major asset classes in 2025:

According to Gate platform data, despite the overall poor performance of cryptocurrencies, some altcoins like CEL, TOKEN, ART, etc., still experienced single-day gains exceeding 100%.

06 Risk Management

In a highly volatile market environment, risk management is especially important. Precious metals investors should be alert to short-term technical correction risks. Silver, after reaching a record high, has already experienced over 10% volatility, indicating possible over-enthusiasm.

Precious metals analysts warn to be cautious of correction risks in the last week of the year. While the long-term bullish logic remains intact, short-term profit-taking pressures should not be ignored.

For crypto investors, Gate platform data shows that support levels exist around $88,000 for Bitcoin and $2,900 for Ethereum, which could be key points for phased entry.

Diversification may be a wise strategy in the current market environment. Rotations between traditional precious metals and digital assets could offer opportunities for flexible position adjustments.

Future Outlook

Silver prices have fallen from the historical high of $81.82 to $74.75, while Bitcoin on the Gate platform remains at $88,317, still holding key support levels. Analysts are divided on silver’s price forecast for 2026: TD Securities expects silver to fall back to around $40, while Montreal Bank’s average forecast is $56.3.

Meanwhile, crypto research firm 10X predicts a short-term rebound for Bitcoin, citing reasons such as “a 30% correction, a decline lasting over two and a half months, and complete reset of technical indicators.” Markets are always divided, and that creates opportunities.