Why Bitcoin (BTC), XRP (XRP), Ether (ETH) Aren't Rallying While Gold, Silver Shine Bright?

Major cryptocurrencies, including Bitcoin, have experienced significant declines recently, contrasting with the surge in gold and silver prices. This divergence is attributed to potential credit risks affecting digital asset treasuries. While gold and silver have rallied due to concerns over global fiscal health and high government debt-to-GDP ratios, cryptocurrencies are under pressure. Bitcoin slipped over 9% and fell below $100,000, with other major tokens like Ethereum and Solana declining between 11% and 20%. Regulatory concerns and fears of a credit freeze are contributing to bearish sentiment in the crypto market. Digital asset treasuries, which have heavily relied on credit markets for funding, may face challenges if credit conditions tighten. In contrast, the rally of precious metals reflects investor confidence in traditional safe havens, indicating a complex relationship between crypto and broader financial stability, as historical trends suggest Bitcoin may lag behind gold by about 80 days in price movements.

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