Bitcoin Price Analysis: BTC Reclaims $88,000, Precious Metals Surge, Is The “Digital Gold” Narrative Unravelling?

Bitcoin (BTC) registered a marginal increase over the past 24 hours, reaching $88,000. However, price action remains muted as investors favored gold and silver instead of risk assets ahead of the Federal Reserve’s rate cut decision and Big Tech earnings, which could act as a major catalyst for the market, particularly BTC. 

BTC’s underperformance compared to equities and precious metals suggests investors are treating crypto as a high-risk asset rather than a safe-haven asset. The flagship cryptocurrency fell to a low of $87,135 on Monday before reclaiming $88,000. BTC has dipped back below $88,000 and is currently trading around $87,843. 

Crypto Rebound Will Happen Once Gold Rally Cools: Tom Lee 

Fundstrat’s Tom Lee believes the cryptocurrency market will recover once the gold and silver rallies cool. According to Lee, record gold and silver prices have overshadowed Bitcoin and other cryptocurrencies; however, the latter should rebound with a weaker dollar and an easing Fed. Lee explained that crypto lacks the leverage tailwind since the industry “de-levered.” 

As long as gold and silver are rising, then there’s a FOMO into buying that instead of crypto. Because when gold and silver take a break, then and in the past, that would lead to a Bitcoin and Ethereum surge afterwards.

Gold prices surged past $5,000 on Monday, reaching a record high of $5,100, rising over 17% since the beginning of the year. Not to be left behind, Silver hit $110, gaining over 55% so far this year. Market experts believe geopolitical tensions, tariff threats, and a weak US dollar are driving investors towards assets like gold and silver. Lee added that the markets are still reeling from the October 10 crash, which wiped out billions from the crypto market. Lee added, 

I think the precious metal move has sucked a lot of the oxygen out of the room. So, I think crypto prices aren’t quite keeping up with fundamentals, but as you know, when fundamentals go up and to the right, prices eventually follow.

Spot Bitcoin ETFs Break Outflow Streak 

US spot Bitcoin ETFs broke a five-day outflow streak on Monday, recording total net inflows of $6.84 million on January 26. Crypto ETFs and investment products bled last week, shedding over $1.7 billions, the largest weekly decline since November 2025. Investors dumped Bitcoin and Ethereum products as the prospect of a rate cut faded, and crypto failed to act as an inflation hedge this cycle. CoinShares head of research James Butterfill stated, 

Dwindling expectations for interest rate cuts, negative price momentum, and disappointment that digital assets have not participated in the debasement trade yet have likely fuelled these outflows.

Bitcoin Hashrate Plummets Amid Massive Winter Storm 

The Bitcoin network hashrate plunged to a seven-month low over the weekend as a major winter storm pummeled the US with snow and ice, forcing miners to pause mining operations to support the energy grid. Weather agencies reported that the winter storm impacted over three dozen states over the weekend, causing widespread rain, snow, ice, and power outages, impacting millions. According to CoinWarz data, the Bitcoin Network’s hashrate began dropping on Friday and hit 663 exahashes per second (EH/s) by Sunday, a 40% decline in two days. However, the hashrate has recovered and reached 854 EH/s by Monday. Abundant Mines, a Bitcoin miner, said that over 40% of the global Bitcoin mining capacity went offline over the weekend. 

Approximately 40% of global Bitcoin mining capacity has gone offline in the past 24 hours due to extreme winter weather.

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) briefly reclaimed $88,000 before being forced back towards $87,000 as it struggles to build momentum while gold and silver surge to record levels. BTC fell to a low of $86,000 on Sunday before rebounding on Monday and settling at $88,250. The flagship cryptocurrency is down 0.59% during the ongoing session, trading around $87,726. 

However, overall market sentiment remains cautious, with investors flocking to gold and silver. The precious metals have rallied to record levels ahead of the Federal Reserve’s first interest rate decision of the year, and expected earnings from a host of mega tech companies. Meanwhile, President Trump found a new tariff target, South Korea. Trump said he was increasing tariffs on imports from South Korea, accusing the country of not living up to its trade deal with Washington. 

NEW: TRUMP ANNOUNCES “BECAUSE THE KOREAN LEGISLATURE HASN’T ENACTED OUR HISTORIC TRADE AGREEMENT, WHICH IS THEIR PREROGATIVE, I AM HEREBY INCREASING SOUTH KOREAN TARIFFS ON AUTOS, LUMBER, PHARMA, AND ALL OTHER RECIPROCAL TARIFFS, FROM 15% TO 25%.”</span></i></p></blockquote> <p><span style="font-weight: 400;">Meanwhile, traditional markets held steady as tech companies prepared to announce their earnings. Nasdaq rose 0.2% as investors readied themselves for earnings from the Magnificent Seven, including Microsoft, Apple, and Tesla, due on Wednesday. Meanwhile, MSCI’s broad index of Asia Pacific shares rose 0.4%, and Japan’s Nikkei fell 0.1%. </span></p> <p><span style="font-weight: 400;">Gold settled around $5,066 per ounce, hovering around a record high, while silver rallied over 6% to $110. Meanwhile, </span><a href="https://financepolice.com/bitcoin-price-analysis-btc-posts-marginal-recovery-as-trump-walks-back-tariff-threats/"><b>Bitcoin</b></a><span style="font-weight: 400;"> and other cryptocurrencies struggled, with the flagship cryptocurrency well below its October peak. Investors have ignored Bitcoin, instead pivoting to gold as falling yields, a weak dollar, and geopolitical uncertainties fuel a rally in equities and precious metals. The divergence has prompted many to question Bitcoin’s “digital gold

narrative and reinforced the view that crypto is trading more like a high-beta asset, sensitive to positioning and liquidity, and less like a hedge. Alex Kuptsikevich, FxPro chief market analyst, stated, 

Cryptocurrencies remain a lagging class of risk-sensitive assets, falling short of metals and the strongest global currencies. The technical bearish picture remains relevant, despite the gains in recent hours. BTC remains below its key moving average lines and has not attempted to break through the support of the last two months.

Meanwhile, the Federal Reserve is widely expected to hold interest rates steady at its meeting on Wednesday. 

BTC ended the previous weekend in the red, dropping 1.55% to $93,633. Sellers retained control on Monday as the price fell 1.15% to $92,559. Selling pressure intensified on Tuesday as BTC fell nearly 5%, slipping below $90,000 to $88,310. Despite the overwhelming bearish sentiment, the price recovered on Wednesday, rising 1.19% to $89,363. BTC registered a marginal increase on Thursday, moving to $89,463.

Source: TradingView

BTC experienced considerable volatility on Friday as buyers and sellers struggled to establish control. Buyers ultimately gained the upper hand as the price registered a marginal increase to $89,474. Selling pressure returned over the weekend, and BTC fell 0.44% to $89,092. Selling pressure intensified on Sunday as the price fell nearly 3% to $86,561. Despite the overwhelming selling pressure, BTC recovered on Monday, rising almost 2% to $88,250. BTC is back in the red during the ongoing session, trading around $87,928.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.