The US dollar is sliding, and it seems that is by design. The Federal Reserve has pumped liquidity into the system, cutting rates three times by 2025 and selling government bonds, weighing on the dollar.
Investors clearly notice it. Bond markets are losing appeal as the DXY drifts to multi-month lows, reflecting signs of a weaker U.S. economy. Combined, these factors are driving capital out of the port.
History shows that this type of setup often leads to strong rallies in risky assets. For example, in March-September 2025, the DXY fell by almost 10%, and Bitcoin [BTC] rode that wave up about 33% to a peak of $126,000.
Source: TradingView (BTC/USDT)
But in this cycle a clear difference arises.
Like the Kobeissi Letter points outThe price of silver is now outperforming Bitcoin by one of the largest margins ever recorded. In about 13 months, silver is up about +270%, while Bitcoin is down 11%.
Other metals show a similar pattern. For example, gold moves more strongly compared to Bitcoin BTC/Gold ratio breaking a key support level and sliding to a multi-year low of 17.35/oz.
From a sentiment perspective, this difference is a pretty clear signal that investors’ risk appetite is declining, with money flowing out of assets like Bitcoin. The bigger question, however, is: what really drives this rotation?
Bitcoin is under pressure as AI-driven capital flows shift
Analysts view the current rotation out of Bitcoin as strategic and not random.
The driving force behind this shift is the ongoing AI boom. UNCTAD reports that AI-powered data centers became a major investment theme by 2025, with spending increasing 14% to a total of $270 billion, fueled by rising demand for AI infrastructure.
That demand is now driving the metals higher, and analysts say it’s just the beginning. A copper supply crisis could be next as AI-driven copper demand is expected to increase by +127% and reach 2.5 million tonnes by 2040.
Source: S&P Global
Simply put, this helps explain why Bitcoin’s current rotation into traditional safe havens isn’t just a routine hedge against a falling dollar, rate wars, or the possibility of another government shutdown.
Instead it is a strategic, AI-driven change in capital flows. Investors are taking the long view and betting that AI infrastructure will create a major imbalance between supply and demand, with copper at the center of this trend.
In this context, Bitcoin’s current push on these metals is not just a reflection of declining short-term risk appetite. Instead, it could mark the beginning of a deeper divide between crypto and industrial metals.
Final thoughts
- While the dollar weakens and the metals rise, Bitcoin lags, signaling a deeper divergence and declining risk appetite for crypto.
- Investors are strategically moving capital out of Bitcoin and into metals like copper, silver and gold, driven by long-term demand from AI infrastructure.