Cryptos Slide as Gold and Silver Rally Amid Economic Uncertainty
Major cryptocurrencies have faced sustained losses this month, while gold and silver climb, reflecting diverging trends between digital assets and traditional safe-haven markets.
Bitcoin (BTC) has fallen more than 9% in November, dipping below the $100,000 on-chain support level, according to CoinDesk data. Ether (ETH), Solana (SOL), and Dogecoin (DOGE) have dropped 11%–20%, while XRP has been relatively resilient, down just over 7%.
The declines come even as the U.S. dollar index (DXY) loses momentum after hitting resistance above 100 earlier this month. Typically, a softer dollar supports both crypto and precious metals—but only gold and silver have gained traction so far, rising roughly 4% and 9%, respectively. Palladium and platinum have also posted modest gains above 1%.
Drivers Behind Bitcoin’s Weakness
Greg Magadini, director of derivatives at Amberdata, attributes bitcoin’s weakness to overextended bullish positioning and potential systemic risks. DATs (digital asset treasuries), which rely heavily on credit markets to fund crypto purchases, could be forced to liquidate assets if credit tightens, potentially triggering cascading sell-offs—especially in volatile altcoins. BTC, as a higher-quality asset, is less exposed but not immune.
Gold and Silver Strength
Precious metals have benefited from mounting concerns over global fiscal health. Japan’s debt-to-GDP exceeds 220%, the U.S. is above 120%, and France and Italy exceed 110%. China’s total non-financial debt surpasses 300% of GDP.
Robin Brooks, senior fellow at the Brookings Institution, noted, “The precious metals rally reflects deeply broken fiscal policies, particularly in high-debt Eurozone countries controlling the ECB.”
Historically, gold has led BTC by around 80 days, suggesting bitcoin may eventually gain momentum as the yellow metal’s rally stabilizes—though the current macro environment adds uncertainty.
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