Certain metals considered “safe havens,” such as gold, silver and platinum, continue to post triple-digit gains, while Bitcoin struggles to catch up. This week, gold rose nearly to $5,000, bringing its year-over-year (year-over-year) gain to almost 80%.
Silver, on the other hand, exploded 200%, while platinum gained 175%. Bitcoinon the other hand yes trading at $89,000 at the time of writing – down 12% over the same period.
For hedge fund manager James LavishThese explosive runs mean that the “debasement trade” is still ongoing and BTC could catch up quickly.
“The degrading trade isn’t just happening; it’s ripping people’s faces off. And so the next question is not ‘if’, but ‘when’ will Bitcoin go higher again?”
Source: James Lavish/Bloomberg
Will BTC Overtake Gold?
Jerome Powell’s term as Fed Chairman ends in May 2026. His replacement will not only test the Fed’s independence but also push markets to react to the entire process. For analysts like Fundstrat’s Tom Lee, gold is likely to continue its rally amid such uncertainty.
However, according to some analysts, BTC’s trajectory is unclear. Some even question its inclusion in the “degrading trade” after lagging behind perceived “safe havens.”
Richly joked,
“Bitcoin is still only second to silver in downgrade trading over the past five years.”
Source: James Lavish/Bloomberg
This begs the question: what is really slowing BTC’s momentum and preventing it from catching up to gold, silver, and platinum?
What is slowing down BTC?
Institutional flows for BTC have declined significantly, while gold demand has soared since late 2025.
The 30-day ETF flows showed Gold has attracted $10 billion since December 2025. During the same period, BTC has only reversed the negative inflows of the fourth quarter of 2025. In fact, the gold flow has yet to completely turn positive.
Source: BOLD report
In other words, there is now a greater demand for gold than for BTC.
Quantum risk could be another factor derailing “digital gold.” Recently Bloomberg reported that Jeffries’ head of equity strategy, Christopher Wood, liquidated his 10% BTC allocation and switched to gold. Wood mentioned the increasing risk that quantum advances could break BTC.
Similar fears have been expressed by Charles Edwards of Capriole Investment. Him recently cited the decoupling of BTC from the global liquidity wave, noting that quantum risk could be behind the underperformance.
Source: Capriole/Fidelity
Final thoughts
- Hedge fund manager James Lavish believes BTC will overtake gold as the “debasement trade” is still ongoing.
- Moderate inflows and quantum anxiety may have contributed to BTC’s underperformance.