The precious metals market experienced a Black Monday on December 29, with gold recording a drop of over 5%. This crash represents the largest daily setback in more than two months, also affecting silver and platinum. Extreme volatility has shaken traditional investors in the final stretch of the year 2025. According to market analysts, this movement could signal the start of a capital rotation toward digital assets on a massive scale.
While metals were sinking, the cryptocurrencies sector showed notable resilience with Bitcoin recovering the $90,000 mark. The price divergence between both markets suggests a shift in the sentiment of institutional investors. Spokespeople like Crypto Rover point out that money is flowing from silver and gold toward the crypto ecosystem. This transfer of value redefines hedging strategies in the face of current global economic uncertainty.
On the other hand, silver suffered an even more drastic setback, falling 16% after reaching all-time highs near $84. The synchronized correction of precious metals points to an unwinding of crowded positions in the commodities market. Nonetheless, gold has managed to stay above its 200-day moving average for a record amount of time. The historical momentum of the yellow metal remains in effect despite this recent and sharp technical pullback.
Are we facing the end of metal season and the crypto boom?
Likewise, the relationship between the performance of Bitcoin and gold has begun to show technical signs of bullish divergence. This phenomenon suggests that the digital asset will outperform the precious metal in terms of profitability over the coming months. In this way, many analysts consider that we are entering a transition phase toward more technological stores of value. Portfolio rotation appears to be imminent according to the latest relative performance indicators between assets.
Furthermore, experts like Michaël van de Poppe warn that gold has fallen below its previous all-time highs. This technical weakness could divert attention from large capital pools toward assets with greater immediate growth potential. Therefore, uncertainty regarding capital flows will continue to fuel volatility across both financial asset classes. Investors must closely monitor key support levels to determine the next market cycle.
It is also important to highlight that, although metals rebounded slightly today, the crypto market continues to show relative strength. The digital ecosystem positions itself as an attractive alternative to the exhaustion of the traditional metals rally. However, it is still too early to declare the definitive end of metal season in the international financial landscape. The competition to be the preferred safe haven will intensify during the start of the next fiscal year.
