Why Bitcoin (BTC), XRP (XRP), Ether (ETH) Aren't Rallying While Gold, Silver Shine Bright?

Major cryptocurrencies like Bitcoin, Ether, and Solana have seen significant declines this month, even as the US dollar rally paused, while precious metals like gold and silver have climbed substantially. This divergence is attributed to several factors unique to digital assets. According to Greg Magadini of Amberdata, much of the bullish news (like Fed easing and resolved government shutdowns) has already been priced into crypto, leaving it vulnerable. Furthermore, fears of systemic risk, specifically a potential credit freeze impacting Digital Asset Treasuries (DATs) that rely on credit markets to fund crypto purchases, are weighing heavily on the market. If credit tightens, DATs might be forced to sell holdings, causing a cascade. Conversely, the rally in gold and silver is driven by mounting concerns over the fiscal health and soaring government debt-to-GDP ratios globally, particularly in the Eurozone. Historically, gold has led Bitcoin's price movements by about 80 days, suggesting crypto might see a bid once the precious metals rally stalls.

(Source：CoinDesk)