FameEX Hot Topics | Precious Metals Trading 'Overheated,' Analyst Predicts Investors Will Move to BTC

Precious metals, particularly gold and silver, have experienced significant surges in response to the ongoing debasement of the US dollar. Gold has risen to an impressive $4,000 per ounce, while silver has reached a 45-year high of over $50 per ounce. This rally has been fueled by the decline in the value of the US dollar, prompting investors to flock to these traditional safe-haven assets. However, analysts are beginning to suggest that the precious metals rally may be losing steam. As a result, there is growing speculation that investors may start shifting towards alternative assets like Bitcoin and tokenized real-world assets. With precious metals reaching record highs in 2025, Bitcoin is now seen as relatively undervalued, setting the stage for a potential strong rally in the fourth quarter of the year.

Nic Puckrin, the founder of Coin Bureau, notes that gold’s more than 50% price rally this year, combined with Goldman Sachs’ forecast of $4,900 per ounce by 2026, could indicate that gold is becoming “overheated.” Puckrin believes that after such a significant rally, investors may begin looking for alternative assets that offer similar hedging benefits against currency inflation and geopolitical risk. Among these alternatives are other metals, commodities, and Bitcoin, which he argues remains undervalued compared to gold. Bitcoin, along with these other assets, provides a hedge against the inflation of fiat currencies and ongoing geopolitical uncertainties, aligning with the broader market trend of seeking value outside traditional financial systems.

Bitcoin itself has seen substantial gains, reaching a record high of over $126,000 in October, coinciding with the surge in precious metal prices. Simultaneously, investors are losing confidence in the US dollar, which is on track to have its worst year since 1973. The Kobeissi Letter analysts note that the dollar has fallen by over 10% year-to-date and has lost 40% of its purchasing power since 2000. This decline in the dollar’s value has triggered a rush into both store-of-value assets like gold and silver and risk assets like stocks, leading to a unique market dynamic.

Analysts suggest that these market movements signal the start of a “new era of monetary policy,” one in which inflation runs higher, and governments continue to finance operations by devaluing their currencies. As a result, asset prices are expected to rise across the board. In this environment, Bitcoin is well-positioned for a strong rally in Q4, with investors increasingly seeking safe-haven assets to preserve their wealth. According to Matt Hougan, chief investment officer at Bitwise, this shift in investment strategies could further cement Bitcoin’s role as a leading alternative store of value.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.