Key Points
• Bitcoin fell back to the $88,500 level during U.S. trading hours, extending a pattern of underperformance relative to global markets.
• Silver broke above $100 per ounce for the first time ever, while gold pushed toward $5,000, drawing capital toward hard assets.
• U.S. spot bitcoin ETF outflows and weaker U.S.-session returns point to fading domestic demand for crypto risk.
Bitcoin weakened again at the start of U.S. trading on Friday, slipping to the $88,500 area as investors continued rotating into precious metals amid heightened macro uncertainty. The move reinforced a growing divergence between crypto assets and traditional stores of value, with gold and silver extending historic rallies while digital assets struggled to attract incremental buyers.
The world’s largest cryptocurrency briefly stabilized after the drop but remained well below last week’s highs near $98,000. The retreat came even as broader U.S. equity markets steadied, suggesting that bitcoin’s weakness was driven less by general risk-off sentiment and more by asset-specific flows.
Precious metals dominate the risk landscape
Capital has continued to pour into metals. Silver surged past $100 per ounce for the first time on record, capping a rapid rally that has accelerated over recent sessions. Gold hovered just below the psychologically important $5,000 level, while platinum rose more than 5% to a fresh all-time high. Copper also advanced sharply, trading just under record highs.
The strength in metals highlights a renewed preference for assets perceived as hedges against currency debasement, geopolitical risk and financial instability. In contrast, bitcoin — often promoted as “digital gold” — has failed to keep pace, particularly during U.S. trading hours.
Crypto stocks and miners follow bitcoin lower
Crypto-related equities tracked bitcoin’s decline. Coinbase shares fell about 2.6%, while Strategy slipped roughly 1.2%. Mining stocks including Riot Platforms and MARA Holdings also posted declines of around 2%, reflecting pressure across the broader crypto ecosystem.
These moves occurred despite U.S. equities recovering from early losses. The Nasdaq turned modestly positive, even as Intel plunged following weaker-than-expected forward guidance, underscoring that crypto’s weakness was not simply a function of broader equity stress.
U.S. investor participation fades
One of the clearest warning signs for bitcoin bulls has been the deterioration in U.S.-session performance. When BTC approached $98,000 last week, cumulative year-to-date returns during U.S. trading hours were close to 9%. That figure has since fallen to roughly 2%, pointing to a sharp slowdown in demand from American investors.
This shift has coincided with heavy outflows from U.S. spot bitcoin ETFs. Over the past four sessions, investors have pulled more than $1.6 billion from these products, reversing much of the inflow momentum seen earlier in the year. At the same time, trading desks have observed increased stablecoin redemptions into fiat, suggesting some institutions are reducing exposure rather than rotating within crypto.
A fragile setup near key levels
With bitcoin now oscillating below $90,000, the market appears increasingly sensitive to further shifts in macro flows. Continued strength in precious metals could keep pressure on crypto, particularly if U.S. investors remain on the sidelines. Conversely, a stabilization in ETF flows or a broader recovery in risk appetite would be needed to reassert bullish momentum.
For now, bitcoin’s struggle to reclaim lost ground while gold and silver surge sends a clear signal: capital is becoming more selective, and crypto is no longer the default hedge in a world searching for safety.
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