In 2025, precious metals significantly outperformed cryptocurrencies, achieving exceptional returns as investors turned to tangible assets with established monetary and industrial roles.
Gold futures rose near the end of the year to exceed $4,552 an ounce, recording more than 50 record highs during the period, representing gains of nearly 70%. This performance is attributed to continuous accumulation by central banks, which secures reliable demand, in addition to lower interest rates, which reduce the opportunity cost of holding non-income-generating assets.
Silver achieved stronger results, rising to more than $77 an ounce, achieving gains of 150% since the beginning of the year. This rise is attributed to reports of restrictions in physical supply in parallel with increased industrial consumption in sectors such as electronics and renewable energy. Similarly, platinum and copper reached new record levels at $2,491.10 and $5.8395, respectively.
In contrast, major digital currencies declined, with Bitcoin falling by 7.10% this year, while Ethereum recorded a loss of 12.5%. Bitcoin fell about 30% from its peak of $126,198 in October to just over $87,000, recording its first decoupling from equity markets since 2014, despite supportive regulatory developments and increasing institutional participation on Wall Street. This weakness comes after sell-offs from long-term currency holders and successive liquidations that put pressure on prices.
Analysts attribute Bitcoin’s recent stability to year-end “tax-loss harvesting” and traders’ reluctance to increase their exposure to an underperforming asset class during the holiday season. Sean Farrell of Fundstrat described the narrow trading range as “usual” in December, as investors sell their lagging positions and lean towards winning assets, with a recovery likely in January supported by expected inflows with the integration of Bitcoin into long-term portfolios. Historical patterns show that a decline in Bitcoin in December is often preceded by positive performance in January, while three consecutive monthly losses for Bitcoin remain a rare occurrence that has only happened 15 times before. (wall street pit)
