Bitcoin vs. Precious Metals: Long-Term Performance Despite Short-Term Divergence

Gold and Silver Soar to New Heights

While Bitcoin has barely moved for weeks, gold and silver are currently experiencing an exceptionally strong phase ^[1]. Both precious metals have risen significantly recently and reached new all-time highs ^[1]. Silver has benefited not only from a weaker US dollar and expectations of looser monetary policy, but also from supply shortages ^[1]. Chinese export restrictions in particular have put additional pressure on the market and tightened supply ^[1].

Bitcoin, on the other hand, recorded a price decline of over 4 percent in December ^[2]. The asset is expected to end the year below its starting value of around $94,000 and is well below its all-time high of $124,000 reached in October ^[2]. At the time of publication, Bitcoin is trading at $88,000 ^[2].

Strategy Continues Aggressive Accumulation

Despite the price decline, Strategy, Michael Saylor's Bitcoin investment vehicle, continued its aggressive accumulation strategy. The company purchased 22,628 BTC in December alone ^[2]. This brings the company's total holdings to 672,497 BTC, representing approximately 3.3 percent of the 19.9 million Bitcoin currently in circulation ^[2].

December's purchases rounded out a year of aggressive accumulation by Strategy. The company reported Bitcoin purchases in 41 separate weeks of 2025 ^[2]. This marks a significant increase from 18 weeks in 2024 and just eight weeks in 2023 ^[2].

Growing Trend Toward Treasury Companies

Strategy's success in issuing debt to finance new Bitcoin purchases has inspired other companies to become "Bitcoin treasury companies" – companies that hold Bitcoin on their balance sheets ^[2]. According to BitcoinTreasuries.net, 192 publicly traded companies hold nearly 1.1 million BTC in their treasuries ^[2].

Outlook for 2026 Remains Contested

Opinions on Bitcoin's future price trajectory are divided. Some traders predict that Bitcoin could suffer further losses, possibly down to $40,000, if the traditionally understood four-year boom-and-bust cycle is still intact ^[2].

However, not everyone is convinced. Nick Ruck, Director of LVRG Research, told Cointelegraph that institutional demand through exchange-traded funds (ETFs) and corporate treasuries has cushioned the blow ^[2]. "While the bull market may be subject to short-term consolidation given macroeconomic pressures, we expect it to continue through 2026 supported by ongoing structural inflows and evolving market dynamics," he said ^[2].

Divergence Between Asset Classes

In this environment, the comparison between Bitcoin, gold, and silver is once again coming into focus ^[1]. The current phase shows an interesting divergence: while traditional precious metals benefit from geopolitical uncertainties and supply shortages, Bitcoin is consolidating after its strong rise last year. Long-term performance and the role of various macro factors remain central topics for investors diversifying between traditional and digital stores of value.