Gold, Silver Prices Hit Phase Highs, Funds Starting to Rotate to Crypto Space

Gold and Silver Prices Open 2026 at Multi-Decade Highs

Gold and silver prices opened 2026 at multi-decade highs, building on strong gains in 2025. Bullion rose near $4,375 an ounce, while silver gained more than 2%. The rally was supported by easing U.S. interest rate expectations and weak dollar conditions.

Precious metals had their best annual performance since 1979, with gold climbing to record levels and silver surging even more. Central bank demand, geopolitical tensions, and ETF inflows contributed to the rise according to Bloomberg.

Bitcoin and Ethereum, by contrast, started the year trading near $88,000 and $3,000 respectively but remained under pressure compared to their 2025 peaks. Whale accumulation rose and altcoins gained, but overall market sentiment remained cautious as reported by Economic Times.

Why Did This Happen?

The surge in gold and silver came as the U.S. Federal Reserve cut rates for a third time in 2025, reducing yields on dollar assets and pushing capital toward alternative stores of value. Dollar weakness also supported metal prices according to Bloomberg.

At the same time, U.S. crypto regulations advanced in 2025, with the House passing the Digital Asset Market Clarity Act and the new SEC leadership promoting rules-based oversight. This created a clearer environment for digital assets and stablecoins to integrate with traditional finance.

Crypto ETFs saw $32 billion in inflows in 2025, despite a pullback in late December. BlackRock’s iShares Ethereum Trust ETF and Fidelity’s Ethereum Fund led the pack, though recent inflows slowed. Meanwhile, Bitcoin ETFs posted record outflows of $4.57 billion in November and December, as prices fell 20% from a late-October high according to Cointelegraph.

December trading volume on centralized exchanges dropped to a 15-month low, with total spot trading falling to $1.13 trillion. Seasonal factors, reduced volatility, and year-end repositioning were cited as causes according to The Block.

What Are Analysts Watching Next?

Gold and silver are expected to remain volatile in early 2026. Some analysts project gold to reach $5,500 and silver $150 by year-end, while others warn of potential corrections from ETF rebalancing and weaker liquidity according to Seeking Alpha.

In the crypto space, Bitcoin appears to be consolidating between $87,000 and $89,000, with analysts watching for a breakout above $90,000. Whale accumulation has increased, but ETF inflows have slowed. Institutional demand and regulatory clarity remain key factors as reported by Economic Times.

Regulatory changes are also expected to influence both asset classes in 2026. The U.S. SEC’s new ETF approval framework, the UK’s final crypto rules, and Hong Kong’s stablecoin framework will shape investor behavior and product availability according to TradingView.

Mutuum Finance, a DeFi lending project, finalized its security audit and entered Phase 7 of its token sale, raising $19.5 million. The project is preparing for its first protocol deployment on a testnet, with plans to support Ethereum and stablecoins according to Global Newswire.

Analysts remain divided on whether 2026 will see a bull or bear market for crypto. While regulatory clarity and ETF growth offer support, price volatility and investor caution continue to temper expectations. Gold and silver, by contrast, are seen as more direct beneficiaries of rate cuts and geopolitical risk according to Seeking Alpha.

The U.S. Dollar Index fell from November through mid-December 2025, supporting gold and silver prices. Central bank purchases and ETF inflows were key drivers of the rally according to Seeking Alpha.

Bitcoin ETFs, once the fastest-growing investment vehicle in crypto, face challenges in early 2026. With many investors taking profits in late 2025, the market now awaits a catalyst to reignite demand for digital assets according to Seeking Alpha.