Bitcoin News Today: Bitcoin Struggles Near $90K as Gold and Silver Outperform in 2025 Rally

Bitcoin traders are bracing for a critical test at $90,000 as the year-end period brings mixed signals. The asset capped below the key psychological level, struggling to build momentum amid a broader macroeconomic shift favoring gold and silver. Precious metals, meanwhile, continued their sharp rise, with gold surpassing $4,500 per ounce and silver reaching $74.71 per ounce.

Peter Schiff, a long-time critic of Bitcoin, doubled down on his skepticism, mocking the cryptocurrency's recent rally. "Santa gave you guys a rally to sell into," he tweeted, arguing that Bitcoin's failure to follow stocks and precious metals signaled the end of its investment thesis. His comments reflect growing concerns among some traditional investors who believe Bitcoin has lost its edge as a store of value.

The underperformance of Bitcoin has sparked a broader reevaluation of its role in global markets. Unlike gold, which typically gains during periods of macroeconomic uncertainty, Bitcoin has shown a mixed response. It has exhibited characteristics of both high-beta tech assets and hard commodities, but has struggled to fully align with either category.

Why the Standoff Happened

Bitcoin's struggles in 2025 were starkly highlighted by the success of physical gold-backed cryptocurrencies and silver. Tether Gold and PAX Gold surged over 72% for the year, outperforming Bitcoin's -6.40% return. Kinesis Silver, a token backed by physical silver bullion, more than doubled in value, aligning closely with spot silver's rally. Meanwhile, Bitcoin hit a peak near $126,000 in October but reversed sharply, ending the year near $87,000.

The cryptocurrency's failure to maintain its rally was also attributed to mechanical factors. Long-term "OG" wallets began aggressively distributing around the $100,000 mark, treating it as a strategic take-profit zone. This kind of unemotional selling weighed on price and complicated any attempt to sustain levels above six figures.

How Markets Reacted

The year's macroeconomic landscape further favored tangible assets. Global monetary policy shifted toward easing, with the U.S. Federal Reserve cutting rates by year-end. Real yields declined, weakening the dollar and supporting hard assets like gold and silver. Bitcoin, by contrast, lacked the physical properties of metals and failed to hold safe-haven inflows during late-year risk-off moves according to market analysis.

The underperformance of Bitcoin has not gone unnoticed by institutional players either. Companies like Strategy, Forward Industries, and Metaplanet made aggressive crypto treasury moves in 2025, but most of their allocations were in Bitcoin. As the asset fell short of expectations, questions emerged about whether these investments were driven by conviction or market timing according to crypto analysts.

What Analysts Are Watching

Market analysts are now closely monitoring how investors and macroeconomic conditions evolve in 2026. If Bitcoin is treated as a de-facto liquidity proxy, its performance will likely track rate expectations and equity volatility more closely than metals. However, if the market leans back into the long-duration scarcity thesis-especially with the next Bitcoin halving on the horizon-Bitcoin could reprice closer to gold according to analysts.

Despite the bearish outlook from Schiff and others, some investors remain bullish. Steven Yamada, a Bitcoin supporter, argued that while the cryptocurrency underperformed silver in 2025, its long-term returns were still superior. Bitcoin's 10-year returns are more than 20,000%, far outpacing the 428% returns of silver.

The coming months will be crucial in determining whether Bitcoin can regain its footing. With thinning liquidity and year-end volatility, the asset faces a delicate balancing act. Traders are watching the $90,000 level closely, as a break below it could trigger further selling pressure and test support at $84,450.

Risks to the Outlook

Bitcoin's struggles are not solely tied to external factors. The digital asset's volatility and lack of clear monetary properties make it more susceptible to large swings. As Peter Schiff has pointed out, Bitcoin's performance during both market upturns and downturns has been inconsistent. It doesn't rally as much when stocks rise, and it falls more when they decline.

Moreover, Bitcoin's recent performance has been shaped by mechanical supply forces rather than panic. The aggressive distribution by long-term holders has created a self-sustaining downward pressure that is difficult to counter, especially in a market environment where other assets are performing better.

What This Means for Investors

Investors are now faced with a key decision: whether to continue holding Bitcoin or pivot to physical assets like gold and silver. Schiff argues that Bitcoin's failure to act like digital gold has made it a risky bet for traditional investors. He predicts that the next four years will be even worse for Bitcoin priced in gold than the previous four.

For now, the market remains divided. Some investors see Bitcoin as a long-term play, while others are shifting capital to physical assets that have proven more reliable in 2025. With the new year approaching, the path forward will depend on how macroeconomic conditions evolve and whether Bitcoin can redefine its role in a shifting financial landscape.