Investors shift to Bitcoin as gold prices slide

The year-end surge in Bitcoin has captured investor attention, as the cryptocurrency’s market capitalization surpasses $3 trillion for the first time since mid-December. Bitcoin recently crossed the $90,000 mark, adding $80 billion to the total crypto market cap. Analysts suggest the rally comes amid declining gold and silver prices, prompting investors to diversify into digital assets.

Some forecasts remain bullish, with projections suggesting Bitcoin could climb to $200,000 or higher in the coming years. However, economist Peter Schiff warned that the year-end spike may present a selling opportunity. Bitcoin needs roughly a 6 per cent increase from its recent low to secure a positive return by the end of 2025, having started the year at around $93,000 and reaching a peak of $126,000.

Meanwhile, gold prices have faced a significant decline on the first day of the business week. In the Pakistani market, gold per tola fell by Rs 5,500 to Rs 470,162, while 10 grams dropped by Rs 4,715 to Rs 403,088. Experts attribute the decline to global market fluctuations and domestic economic factors, highlighting the contrasting performance of traditional and digital assets.

The contrasting trends suggest that investors are increasingly viewing Bitcoin as an alternative to gold, particularly in times of local economic uncertainty and global commodity price volatility.