The ongoing momentum in traditional safe-haven assets is leaving Bitcoin trailing as gold and silver experience significant gains. Recent market activity saw gold nearing $5,000, reflecting an impressive year-on-year increase of approximately 80%. Meanwhile, silver surged by 200%, and platinum recorded a notable increase of 175%. In stark contrast, Bitcoin was priced at $89,000, marking a 12% decline over the same timeframe.
James Lavish, a hedge fund manager, suggests that this divergence indicates the “debasement trade” remains robust, hinting that Bitcoin may eventually catch up. Lavish stated, “The debasement trade is not just on; it is ripping people”s faces off. And so, the next question is not “if”, but “when” does Bitcoin resume higher?”
The pivotal question now is whether Bitcoin can regain its competitive edge against gold and silver. With Jerome Powell“s term as Fed chair set to conclude in May 2026, the transition to his successor could have profound implications for market dynamics. Analysts, including Tom Lee from Fundstrat, believe that gold”s rally is likely to persist amid this uncertainty. However, the future trajectory for Bitcoin remains uncertain, with some experts questioning its role in the current “debasement trade” given its underperformance relative to traditional safe havens.
Several factors may be inhibiting Bitcoin“s momentum. A notable decline in institutional investment has been observed, while demand for gold has surged dramatically since late 2025. Recent data indicates that gold has attracted around $10 billion in ETF flows since December 2025, whereas Bitcoin has merely reversed negative inflows recorded in Q4 2025 and has yet to achieve a fully positive flow.
Furthermore, growing concerns surrounding quantum risk could also be impacting Bitcoin. Christopher Wood, Head of Equity Strategy at Jeffries, recently decided to liquidate a 10% allocation in Bitcoin in favor of gold, citing fears that advancements in quantum computing could potentially undermine Bitcoin“s security. Similar sentiments were echoed by Charles Edwards of Capriole Investments, who noted Bitcoin“s decoupling from global liquidity trends and suggested that quantum risks may be contributing to its current underperformance.
As the market continues to evolve, the question remains: will Bitcoin be able to adapt and reclaim its position among the top-tier assets as the “debasement trade” unfolds further?
