Gold and Silver Skyrocket to ATH. Wen Bitcoin?

Investors have once again turned most of their attention to precious metals like gold and silver. This is evident in their prices, which attained all-time highs (ATHs) today.

As of today, December 22nd, gold surpassed $4,400 per ounce for the first time. Silver, on its part, attained a peak trading price of $69.44 per ounce. These assets saw a remarkable surge amid ongoing geopolitical tensions and expectations of rate cuts from the United States Federal Reserve (the Fed).

Instead of also pumping alongside these precious metals, bitcoin (BTC) has failed to record a significant price surge. At the time of writing, it briefly touched $90,000 before rebalancing below that price level.

Gold and Silver Take the Spotlight

It is worth noting that gold and silver did not have significant price changes for most of this year. For instance, gold traded below $3,500/oz for most of this year. Silver, on the other hand, lingered below $40/oz for a significant duration this year.

The increase came amid talks about the Fed cutting interest rates. Typically, when rates are cut, investors seize the opportunity to spend more in the market. This enables the prices of assets like gold, silver, and even bitcoin to soar. On the other hand, a rate hike often comes with a price reduction for these digital assets.

On December 10th, the Fed reduced its rates. Investors expect that the rates will be further lowered in the near future.

Another factor fueling gold and silver’s increase is geopolitical tension between the U.S. and Venezuela. Since his 2020 administration, Donald Trump has claimed that Venezuela’s president, Nicolás Maduro, uses funds from the South American country’s oil to run a narcoterrorist organization. Still, these claims had no evidence.

Recently, Trump commenced a crackdown on Maduro’s finances by blocking the transportation of its oil tankers.

Currently, the U.S. Coast Guard has captured two oil tankers detected in the Caribbean Sea. A third oil vessel was spotted and was monitored hours ago. Reports indicate that oil tankers heading toward Venezuela have retreated.

Amid concerns about how U.S. geopolitical tensions with Venezuela will play out, many investors have begun flocking to safer assets like gold and silver.

Can Bitcoin Catch Up?

Granted, Bitcoin was on a rampage for most of this year, hitting multiple all-time highs. It reached a peak above $126,000 in early October. This surge only spurred proponents who touted BTC as digital gold, believing it would outperform gold.

Earlier this month, Binance co-founder Changpeng Zhao won a debate with gold supporter Peter Schiff over which is better between bitcoin or gold.

Bitcoin’s applaudable price gains have stalled for over two months, forcing its price lower. At the time of writing, it traded at $89,600, down 29.2% from its peak value. Many wonder whether bitcoin would still experience the Santa rally and pump amid the Christmas holiday. Still, the leading crypto continues to struggle amid a price surge expectation.

The gap in the valuations between gold, silver, and bitcoin has become pronounced. According to data from CompaniesMarketCap, gold has a market cap of $30.99 trillion, making it the largest globally. Silver ranks fourth-largest, with a market valuation of $3.88 trillion. Bitcoin has a market cap of $1.794 trillion, ranking it 8th.

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