Investors in the UAE and across the region are increasingly shifting funds from cryptocurrencies into safe-haven assets such as gold and silver, citing extreme volatility and the recent sharp decline in digital currencies, analysts say.
“Yes, investors are moving from crypto to gold and silver. Cryptocurrencies were highly appealing recently, and retail investors in particular tend to follow the hype. Many who believed Bitcoin would continue its upward trajectory have now exited their positions and turned to commodities, hoping to offset their crypto losses,” Wael Makarem, lead financial markets strategist at Exness, told Khaleej Times in an interview.
However, Makarem cautioned that it remains unclear how long this portfolio reallocation trend will last.
Bitcoin’s sharp correction has contrasted starkly with the rally in precious metals. After hitting a record high of nearly $125,000 in October 2025, Bitcoin plunged to around $63,000 before recovering modestly to about $67,000 on Tuesday evening.
Stay up to date with the latest news. Follow KT on WhatsApp Channels
In contrast, gold and silver climbed to record highs last month, surpassing $5,500 and $120 per ounce, respectively.
Financial institutions remain bullish on gold, supported by strong central bank buying, US Federal Reserve interest rate cuts, and persistent geopolitical tensions.
Several analysts had projected gold would reach $5,000 in 2026. Not only did it cross this key psychological threshold in January, but it also surged past $5,500 last month.
JPMorgan Chase projects that gold will remain bullish through 2026 and 2027, with prices potentially reaching $6,000. Similarly, UBS has set a $6,200 target for the yellow metal in 2025.
Konstantinos Chrysikos, director of customer relations at Kudotrade, said digital assets have been under sustained pressure due to multiple factors, including China’s renewed regulatory crackdown and the alleged crypto links tied to Jeffrey Epstein.
“China introduced a stricter regulatory regime, which negatively impacted cryptocurrencies. Then the Epstein scandal in the US further dented investor sentiment, pushing prices to unexpectedly low levels. Another significant factor was large holders liquidating positions, likely to support exposure in other cryptocurrencies, equities, or even gold,” Chrysikos said during the interview.
On Tuesday, for example, Harvard University reduced its Bitcoin exposure and diversified into Ethereum.
While Chrysikos noted that predicting short-term asset performance remains difficult, he said he currently favours precious metals and commodities over cryptocurrencies.
