FameEX Hot Topics | Analyst: Precious Metals Market 'Overheated,' Investors Likely to Shift to BTC

Precious metals like gold and silver have surged in response to the debasement of the US dollar, with gold reaching an impressive $4,000 per ounce and silver climbing to a 45-year high of over $50 per ounce. This rally in precious metals has been driven by the decline in the value of the US dollar, causing many investors to flock to these traditional store-of-value assets. However, analysts suggest that the precious metals rally may be losing momentum, making way for a potential shift towards alternative assets like Bitcoin and tokenized real-world assets. With precious metals hitting record highs in 2025, Bitcoin is seen as relatively undervalued, setting the stage for a strong Q4 rally.

Nic Puckrin, founder of Coin Bureau, points out that gold’s more than 50% rally this year—coupled with Goldman Sachs’ prediction of $4,900 per ounce by 2026—indicates that gold may be “overheated.” He believes that after this significant rally, attention will likely shift to alternative assets that offer similar benefits, including other metals, commodities, and Bitcoin, which remains undervalued compared to gold. Puckrin emphasizes that these assets, like Bitcoin, are viewed as hedges against fiat currency inflation and geopolitical uncertainty, aligning them with the broader trend of seeking value outside traditional financial systems.

Bitcoin itself has seen a remarkable increase in value, hitting a record high of over $126,000 in October, coinciding with the surge in precious metal prices. Meanwhile, investors are increasingly losing confidence in the US dollar, which is on track to have its worst year since 1973. Market analysts at the Kobeissi Letter have noted that the dollar has dropped over 10% year-to-date and has lost 40% of its purchasing power since 2000. This decline in the dollar’s value has led to a simultaneous rush into both store-of-value assets like gold and silver and risk assets like stocks, creating a unique market dynamic.

Analysts suggest that this unusual behavior signals a shift towards a “new era of monetary policy,” where inflation runs higher and the government continues to finance operations by devaluing the currency. As a result, all asset prices are likely to rise. In this environment, Bitcoin is well-positioned for a strong rally in Q4, as investors increasingly look to preserve their wealth by moving into safe-haven assets, according to Matt Hougan, chief investment officer at Bitwise. This rotation could further solidify 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.