While gold price soars above $5,000, Bitcoin correction phase intensifies

While gold and silver stand out, Bitcoin’s weakness symbolizes market disbalancing. As of January 2026, BTC is hovering around the $84,000 level, marking a 17.2% decline over the past year. Meanwhile, gold is approaching its historical level of $4,930 per ounce, while silver is also rising above $96. This performance disparity between asset classes has sparked significant discussions among market participants.

Precious Metals Rally Momentum, While, Bitcoin Corrects

During Thursday’s market session, gold reached the $4,930 per ounce level, marking a 1.7% increase. Silver has similarly risen 3.7% to recover the $96 level. On the other hand, Bitcoin has fallen from $89,000 to the $84,000 level, correcting by more than 30% from its all-time high of $126,000 in early October 2024.

Behind this price fluctuation is investors’ shift away from risk assets. Despite its narrative as a “real asset,” BTC is trading like a high-beta risk asset, which is increasingly shunned by investors seeking a store of value.

The End of the Recruitment Story or a Temporary Adjustment

Jim Bianco of Bianco Research points out that the narrative around Bitcoin adoption is losing power. According to him, “recruitment announcements are no longer effective in the market,” suggesting that the source of new demand may be drying up.

In contrast, Eric Balchunas, a senior ETF analyst at Bloomberg, offers a different perspective. He highlighted that Bitcoin, which was $16,000 in the 2022 crypto winter, has risen to $126,000 in just 20 months. He pointed out that the correction after recording a return of about 300% is rather a healthy price formation process.

Early Investor Cash-Out Accelerates

One of the key factors contributing to the recent softness in Bitcoin prices is profit-taking by early investors. Balchunas described this phenomenon as a “silent IPO for Bitcoin.” The process by which investors who have held for more than 10 years cash out large amounts of money is creating supply pressure that exceeds the market’s absorption capacity.

As a practical example, an early investor reported to have sold $9 billion worth of BTC in July 2025. While these large sell-offs provide short-term downward pressure on prices, they also suggest long-term market entrenchment.

Trailing almost all assets in the last 14 months

From a broader perspective, in the past 14 months immediately following Trump’s election victory in November 2024, Bitcoin’s performance has lagged far behind. According to Bianco data, Bitcoin recorded a 2.6% decline during this period. On the other hand, silver has risen by 205%, gold by 83%, Nasdaq by 24%, and S&P 500 by 17.6%.

Particularly intriguing is that despite Bitcoin’s 122% year-over-year gains as of November 2024, significantly outpacing gold, the position has reversed in the months that followed. Balchunas pointed out that “BTC is in a stagnant phase while all other assets are progressing rapidly until a new theme emerges.”

Sentiment Indicators Also Suggest Divergence

A group of indicators that suggest market sentiment also clarifies this contrast. JM Bullion’s Gold Fear & Greed Index has signaled extreme bullishness in the precious metals market, reflecting an overheated trading situation that has seen a nominal value increase of approximately $1.6 trillion in a single day. On the other hand, similar crypto indicators remain in the fear zone.

This divergence suggests that the psychological distance between investors is wide open between gold and Bitcoin, and it is likely that the trend of gold preference will continue in the short term.