On Thursday, January 29, gold prices soared above $5,500, setting a new record, while cryptocurrencies like ether and bitcoin stagnated.
According to Kitco data, the world’s most costly precious metal has risen to almost $5,588.73 per ounce. At this moment, it was increased up close to 30% since the start of 2026.
However, according to Coinbase statistics from TradingView, Bitcoin is essentially unchanged from the start of the year.
The price changes that followed the most recent Federal Open Market Committee meeting demonstrated the difference between these two. While bitcoin prices did not increase, gold prices surged after the central bank maintained the benchmark federal funds rate’s target range.
A number of observers, including Brian Huang, cofounder of the fintech company Glider, discussed this trend.
“The FED maintaining rates was already priced in, so today’s lack of movement in stocks and cryptocurrency is not surprising,” he wrote via email. “A growing concern about US stability is what’s driving gold today (and has been for the past few weeks).”
“We can see this in FX rates too: EURUSD is up 15% over the past year,” noted Huang. “These actions suggest that money is shifting from US dollars to potentially safer assets.”
William Stern, founder of Cardiff, also weighed in, claiming that “Gold hitting $5,400 is not a rally. It is a US dollar report card.
In an email statement, he stated, “Gold still hit an all-time high and the Fed refused to cut rates.”
Stern stated, “That indicates the market does not trust the currency.” “Crypto is waiting for a signal but Gold is reacting to reality.”
Government Debt Specter
Greg Magadini, Amberdata’s director of derivatives, adopted a different strategy, concentrating on the issues related to the world’s debt load.
In an email statement, he stated, “There has been massive speculation that the recent move higher in Gold and Silver may be driven by a weakening USD.”
Despite this, the DXY index shows that the USD has dropped 15% since January 2025. According to the analyst, gold has increased by about +110% and silver by +300% within the same period.We would anticipate other “hard assets” like Bitcoin, oil, and real estate to rise along with gold and silver if the movement in precious metals was solely a USD-driven reaction, Magadini added.
Nevertheless, there is compelling evidence that other factors are driving up the price of precious metals.
The market analyst continued by highlighting his worries regarding Japan’s debt position.
“This loss of confidence in the world’s most indebted country may be the trigger to buy hard assets like gold and silver, as a global debasement hedge (as opposed to a US devaluation hedge),” he said. “The indebted government of Japan has seen the yields in their long-dated bonds increase to levels not seen in 30 years.” “Central banks and sovereign funds would carry out these flows directly.”
Cryptocurrencies vs. Gold
The CEO of Prospero.ai, George Kailas, also highlighted the differences between digital currencies and the most valuable precious metal in the world.
He wrote in an email, “Central banks are purchasing gold at almost twice the historical rate—we’re talking about 800 tonnes annually—while these institutions hold it as a core reserve asset, unlevered, with no intention of selling it into stress.”
“Ether and Bitcoin? The market analyst underlined, “They trade in leverage-heavy derivatives books, where the first instinct is to hit the sell button and raise cash when volatility spikes.”
Official buyers make a structural bid for gold, while cryptocurrency is sold automatically as a forced liquidation. That’s portfolio mechanics, not opinion,” he went on.
Kailas continued by explaining how the Fed’s choice to maintain benchmark rates has entirely different effects on digital assets and precious metals.
Official buyers make a structural bid for gold, while cryptocurrency is automatically dumped as a forced liquidation. That’s portfolio mechanics, not opinion,” he added.
Kailas continued by explaining how the Fed’s choice to maintain benchmark rates has entirely distinct effects on precious metal and digital assets.
“Gold’s attractiveness as an insurance policy against policy error and geopolitical tail risk is unaffected by the Fed’s declaration of “no change.” However, he said that a “no surprise” decision leaves the market flat for cryptocurrency, which requires a trigger to fire adoption narratives.
“It’s treating two entirely different asset classes as though they are the same.”
