Bitcoin loses ground amid record gold growth

Gold has updated its historical high, exceeding $ 5500, while bitcoin BTC $81,937.52 Mezo Wrapped BTC -5.89% Market capitalization $46.96 million VOL. 24 hours $3.74 billion is showing negative dynamics. Over the past day, the market capitalization of gold has risen to $ 38 trillion, adding $ 1.5 trillion, which is about the same as the valuation of the entire bitcoin market.

Silver is also showing rapid growth: over the week, its price rose by 22%, and its capitalization reached $ 6.6 trillion. Analysts explain the multi-month rally of both metals by the increased interest in assets that are seen as a hedge against the depreciation of fiat currencies.

Against this background, bitcoin looks weaker. After the October collapse, which resulted in liquidations of $ 19 billion, quotes have not been able to recover to previous levels. Over the past five years, gold has risen by about 185%, while bitcoin has risen by 164%, which calls into question its status as «digital gold.»

Despite this, institutional investors remain optimistic. A Coinbase survey showed that 71% of respondents consider bitcoin to be undervalued in the range of $ 85,000−95,000, and 80% are ready to hold or increase their positions even if the market falls by 10%.

The sentiment indices show a sharp divergence: for the crypto market, the fear and greed index is 26 («fear»), while for gold it reached 99, which corresponds to a state of «extreme greed.»