After a surprise bullish breakout last week, spot Gold and Silver have extended their gains. During the past 24 hours, spot Gold surged 2% to hit a fresh new all-time high of about $4,762 per ounce at press time.
Spot Silver price surged 5% during the past 24 hours to hit a new ATH of above $95 on Tuesday, January 20, 2025. Similarly, Palladium and Platinum recorded gains on Tuesday to trade at about $1,869 and $2,446 at press time.
Crypto Market Extends Losses as Trump Celebrates 1-year in Office
Meanwhile, the crypto industry is counting losses as President Donald Trump celebrates exactly one year in office. Bitcoin (BTC) price slipped below a crucial support level around $90k to trade about $89.8k at the time of this writing.
Ethereum (ETH) led the wider altcoin market in a bearish outlook. The top-tier altcoin slipped 6% on Tuesday to trade at about $2,998. As such, the total crypto market cap dropped 4% during the past 24 hours to hover around $3.02 trillion during the mid North American trading session.
Main Reasons Why Precious Metals Outperformed Crypto Today
Geopolitical Crisis: Renewed fear of tariff wars
The precious metal industry outperformed the crypto market largely due to the escalated geopolitical tensions. President Trump has threatened to hit European imports with a fresh tariff if a Greenland deal is not struck.
As such, traders have fled to the precious metal industry amid a weakening U.S. dollar. Meanwhile, the crypto market dropped catalyzed by the recent delay in the passage of the Clarity Act in the Senate.
Heavy liquidation of long traders
The crypto industry experienced bearish sentiment on Tuesday following a heavy liquidation of long traders. According to market data from CoinGlass, a total of $693 million was liquidated from crypto leveraged traders today, with around $632 million involving long traders.
What’s Next?
The crypto market is expected to experience a reversal against the precious metals in the near future. Capital rotation from gold and silver is expected to trigger a crypto bull market in the near future.
Moreover, institutional investors, led by Strategy and BitMine, have accelerated their crypto acceleration. According to onchain data analysis from CryptoQuant, whales with a Bitcoin balance of between 100-1k have relentlessly accumulated more BTCs since the approval of the spot BTC ETFs in the United States.
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author’s own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Credit: Source link