Safe-Haven Divergence: Precious Metals Rally as Bitcoin Struggles

As global markets grapple with heightened geopolitical tensions and policy uncertainty, a notable divergence has emerged between traditional safe-haven assets and cryptocurrency markets. Gold and silver are experiencing significant breakouts, while Bitcoin consolidates below key resistance levels. This shift in capital flows underscores the distinct roles each asset class plays during risk-off periods.

Bitcoin Faces Technical and Structural Headwinds

Bitcoin continues to grapple beneath the $90,000 threshold, with market confidence deteriorating. Several analysts are now calling for an extended bear market, as the leading cryptocurrency fails to sustain momentum from earlier rallies.

According to data from CryptoQuant, Bitcoin's demand has turned negative—a concerning signal that suggests weakening buyer interest in the asset. Further compounding the selling pressure, short-term holders are realizing losses, indicating capitulation among newer market entrants.

From a technical standpoint, Bitcoin has lost its short-term bullish structure. The asset has dipped below its 50-day moving average, now testing the critical 100-day moving average. This development signals a concerning weakening trend and raises alarms about potential further downside risks.

Precious Metals Attract Safe-Haven Capital

In stark contrast to Bitcoin's sideways price action, both gold and silver are experiencing upward momentum. This strength in precious metals reflects increasing demand for traditional safe-haven assets as investors seek shelter amid geopolitical tensions and escalating policy uncertainty across major economies.

This divergence highlights a fundamental difference in market perception of these asset classes during periods of financial stress.

The Risk Asset Classification Problem

Despite the narrative of Bitcoin as