Gold and silver lose momentum after record runs as bitcoin remains near $88K

Bitcoin hovered near $88,000 on Monday, struggling to gain momentum even as gold and silver notched historic rallies before easing back.

The cryptocurrency clawed back some losses after another round of weekend selling but remained below the roughly $90,000 level seen late Friday. Traders pointed to mounting concerns over a possible U.S. government shutdown on Jan. 31 — and the liquidity squeeze it could trigger — as a key driver of Sunday’s decline.

Those same concerns failed to slow the surge in precious metals. Gold pushed through $5,000 and briefly topped $5,100 for the first time, while silver climbed as high as $118. Momentum faded later in the session, with gold retreating to about $5,043, still up 1.3% on the day, and silver pulling back to $108, retaining gains of roughly 7%.

“Gold and silver casually adding an entire bitcoin market cap in a single day,” wrote crypto analyst Will Clemente, capturing the frustration among bitcoin investors as BTC lagged the broader macro move.

Currency markets added to the backdrop, with the U.S. dollar index (DXY) sliding to its weakest level since September. The move followed reports of coordinated intervention by the Federal Reserve and the Bank of Japan aimed at shoring up the yen. The dollar was down more than 1% at 154.07 per yen.

Bitcoin outlook remains cautious

Bitcoin’s inability to rally alongside a weaker dollar has kept traders wary in the near term. Analysts at Swissblock said recent price action has reinforced a bearish tilt, warning that a decisive break below the $84,500 support level could set the stage for a deeper pullback toward $74,000. They added that holding this support as risk metrics cool could present a more attractive setup for buyers.

Bitfinex analysts echoed that view, forecasting continued range-bound trading between $85,000 and $94,500. They noted that options market activity suggests traders are hedging near-term risks without pricing in a spike in longer-dated volatility.

As a result, the market is “pricing transitory risk rather than a sustained disruption to market structure,” the analysts said.

ETF outflows and legislative uncertainty

Pressure on bitcoin has also been amplified by steady outflows from spot bitcoin ETFs, which have exceeded $1.3 billion over the past week, pointing to weak investor risk appetite.

Jim Ferraioli, Schwab’s director of crypto research and strategy, said a sustained move beyond current levels is unlikely without stronger signals from on-chain activity, ETF flows, derivatives positioning or miner participation.

He added that meaningful progress on the Clarity Act could act as a catalyst, but that effort may be delayed by the threat of a government shutdown. Until there is greater regulatory clarity, Ferraioli expects bitcoin to trade in a narrow band between the low $80,000s and mid-$90,000s, with large institutional investors remaining cautious.

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