The first cryptocurrency has entered the "red zone," while gold gained 4.4% in just one day. The market valuation of the precious metal increased by $1.5 trillion, comparable to the entire market capitalization of Bitcoin.
Largest assets by market capitalization. Source: Infinite Market Cap.
The price of a troy ounce of gold has reached a historic high of over $5,500, bringing the total market value of gold to $38 trillion.
Silver also saw growth, increasing by approximately 22% over the past week, with a market capitalization of $6.6 trillion.
The months-long rally in metals is attributed to hedging against the devaluation of fiat currencies. In this context, Bitcoin appears weak, challenging the narrative of being a "digital safe haven." Prices have not recovered since the crash in early October, which triggered $19 billion in liquidations.
The lag is also evident over the long term: in the past five years, gold has risen by about 185%, outpacing Bitcoin's growth of approximately 164%.
Despite this, major players remain optimistic. A Coinbase survey revealed that 71% of institutional investors believe Bitcoin is undervalued, estimating its worth between $85,000 and $95,000.
About 80% of respondents are willing to hold or increase their positions if the market drops another 10%.
Sentiments in the sectors are diametrically opposed. The cryptocurrency fear and greed index stands at 26, indicating "fear."
In contrast, a similar indicator for gold from JM Bullion has reached 99 points, signaling "extreme greed."
As a reminder, in January, precious metals surpassed cryptocurrencies in popularity on social media.