Bitcoin falls to USD $120,000 as silver takes center stage and gold pauses its rally

By Hannah Perez

As Bitcoin loses strength, precious metals take center stage ahead of Powell’s comments on the course of US FED monetary policy. Silver broke record for the first time in 45 years.

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• As Bitcoin loses strength, precious metals capture the market’s attention.
• Silver surpassed USD $50, breaking a record for the first time in 45 years.
• Bitcoin momentarily sank below $121,000 ahead of Powell’s speech.
• The market is attentively waiting for clues about the course of US monetary policy.

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Bitcoin (BTC) retreated below USD $121,000 this Thursday, extending the correction for the third day in a row after breaking a new all-time price high above USD $126,000 on Monday.

The data of CoinGecko show that the flagship cryptocurrency momentarily retreated towards a local low of USD $119,967 at noon (ET) as part of a 2.7% drop in the last 24 hours.

In contrast, precious metals are taking center stage. Silver reached an all-time high of USD $51.08 per ounce, with a daily increase of 4.51%, surpassing the previous peak of USD $49.45 recorded in 1980, according to market data.

The milestone comes a day after gold marked its own all-time high above $4,000 per ounce, driven by growing demand for hedging assets against inflation and geopolitical instability.

Bitcoin sinks towards USD $121,000

Bitcoin had initially benefited from this trend towards safe haven assets earlier in the week, when it topped out at $126,080 on the charts, although this momentum has now faded.

The recent correction in the cryptocurrency market could be influenced by expectations regarding the monetary policy of the United States Federal Reserve (FED). Investors are watching FED Chairman Jerome Powell’s upcoming speech for signs of potential interest rate cuts. Last month, the FED cut rates by 25 basis points, but uncertainty remains due to a lack of new economic data, a result of the partial US government shutdown.

The cryptocurrency market replicated this cooling, with Ethereum (ETH) falling 4.7% to USD $2,400, while BNB and Dogecoin (DOGE) recorded losses of 5% and 6%, respectively. Other major cryptocurrencies like Solarium (SOL), XRP and Cardano (ADA) also fell between 3.7% and 4.7%, according to data from CoinGecko.

Liquidations in the cryptocurrency derivatives market reached USD $681 million, with USD $525 million corresponding to long positions, according to data from Coinglasssuggesting impending volatility among digital assets.

Stock markets also reflected this caution. Futures for US indices, such as the S&P 500 and Nasdaq 100, fell as much as 0.50% on Thursday, after reaching all-time highs the previous day. Investors are waiting for clarity on the FED’s policies, in a context of global economic uncertainty.

Silver and gold take center stage ahead of Powell’s comments

While Bitcoin faces headwinds, precious metals continue their rise. Although gold moderated its rally on Thursday to trade around $3,955 per ounce, its 50% annual return far outpaces the 29% gain in Bitcoin in the same period. Silver, for its part, has captured the attention of investors by breaking historical barriers, with various sources reporting a gain of more than 65% so far in 2025.

The correction of Bitcoin and the rise of precious metals underline a shift in investor sentiment towards more traditional assets in times of uncertainty. As traders evaluate FED signals and geopolitical developments, the cryptocurrency market could face more volatility in the near term.

For now, silver and gold appear to be leading the race as safe havens, leaving Bitcoin on hold, with upcoming rate decisions possibly greatly influencing its evolution. The price of BTC is USD $120,870 at the time of going to press, 4% below its price maximum.

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Article written with the help of AI, edited by DailyBitcoin

Image from Unsplash

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