Bitcoin slipped on Wednesday as gold surged 4.4% in 24 hours, adding an eye-popping $1.65 trillion to its market cap in a single day.
Gold broke the $5,500 per troy ounce mark, reaching a new all-time high, with its total market cap climbing to $38.77 trillion—an increase nearly equal to Bitcoin’s $1.75 trillion market cap, according to Infinite Market Cap data.
Silver also made significant gains, rallying 21.5% over the past week to a $6.6 trillion market cap, further widening its lead over Nvidia, the largest publicly traded company.
The multi-month rally in precious metals—driven by what’s been called the “debasement trade”—has stood in stark contrast to Bitcoin’s underwhelming performance, despite arguments that BTC should also act as a safe-haven asset.
Bitcoin’s price has struggled to gain traction since early October, when a crypto market crash wiped out over $19 billion in positions. Prior to the Oct. 10 crash, investors were increasingly viewing both Bitcoin and gold as debasement trades during periods of fiscal irresponsibility and monetary expansion.
The gap between gold and Bitcoin becomes even clearer over a five-year horizon: gold has risen 173%, outperforming Bitcoin, which is up 164% over the same period.
Bitcoin could be undervalued, say institutional investors
A Coinbase survey released earlier this week found that 71% of 75 institutional investors believe Bitcoin is undervalued at $85,000–$95,000. Around 80% said they would either hold their crypto positions or buy more following another 10% market dip, reflecting long-term conviction in the asset class.
Bitcoin and gold sentiment at opposite ends of the spectrum
Investor confidence also diverges sharply between the two assets. The Crypto Fear & Greed Index, which gauges Bitcoin and broader crypto sentiment, currently sits at 26/100—“fear” territory. In contrast, JM Bullion’s Fear & Greed Index for gold reads 99/100, signaling “extreme greed.”
