Bitcoin is falling behind precious metals as it is in a consolidation phase after failing to hold onto the $90,000 support level. According to CryptoQuant, short-term cryptocurrency holders are increasing selling pressure by liquidating positions at a loss. In contrast, gold and silver are experiencing steady growth fueled by economic uncertainty and investor expectations of lower interest rates.

The primary reason for this divergence lies in the market’s perception of these assets. While precious metals are viewed as safe-haven assets during uncertain times, Bitcoin is still regarded by major investors as a high-risk instrument. As concerns mount, financial players are reallocating capital into gold and government bonds, pushing cryptocurrency to the sidelines. As analysts at CryptoQuant emphasized, Bitcoin lacks the economic catalysts needed to establish sustainable growth, as demand has almost waned.

However, experts do not rule out a potential recovery for Bitcoin. If visible demand turns positive, the digital asset could align more closely with the performance of precious metals. Meanwhile, Peter Schiff, an economist and well-known proponent of gold investments, stated that the yellow metal has a better chance of reaching $1 million than the leading cryptocurrency, Bitcoin.