Bitcoin (BTC) appears to be a loser compared to gold as the precious metal hit new all-time highs on Monday.
key points:
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The analysis concludes that Bitcoin is no longer an undervalued trade after years of losses against gold.
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BTC price action failed to rebound as the precious metal reached all-time highs.
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Gold begins to climb the S&P 500, which could potentially change the age-old story if the gains continue.
BTC debasement trade: “the narrative is broken”
new analysis Karel Merckx, an investment expert at Dutch investment advisor Belgers Belangen, says Bitcoin has failed as a “debasement trade.”
Bitcoin slipped below 20 ounces in gold terms in early 2026, and has now hit a two-year low, according to data trading view,
Gold and silver prices continued to fall while Bitcoin declined as the market reacted to the US government’s action against Federal Reserve Chairman Jerome Powell.
While bulls expect BTC/USD to pick up momentum soon, for Mercs, the writing has been on the wall for a long time.
“The verdict is this: the debasement trade is gold and silver, not bitcoin,” he told X followers in a post on Monday.
“Direct attack on Fed sends metals to new ATH while BTC is 20% down from its peak.”
Merks objects to the idea that Bitcoin is an attractive destination for investors seeking shelter from fiat currency supply weakening, also known as debasement trading.
Regardless of how Bitcoin stands as bullion versus “digital gold,” actual capital flows point to demand for the latter.
“The narrative is broken,” he wrote.
“Investors are choosing raw hard money over digital experimentation. Book closed.”
bitcoin price cycle obituaries rise
Among crypto supporters, a sense of urgency continues to build.
Connected: Fed rate cut coming under fire: 5 things to know in Bitcoin this week
Addressing the topic, crypto trader, analyst and entrepreneur Michael van de Poppe admitted that the market’s bullish time may be over.
Times are starting to get interesting for anyone involved #crypto market.
Gold has made a new all-time high.
Silver has made a new all-time high.My concern: It really needs to accelerate with this breakout, otherwise we’ll start to fall back down, and into a bearish… pic.twitter.com/55VsW2UyuT
– Michael van de Poppe (@CryptoMichNL) 12 January 2026
Turning to stocks, crypto market commentator Benjamin Cowen called gold’s performance against the S&P 500 “one of the most important charts right now.”
“If the SPX breaks out against gold, the environment we have found ourselves in for the last decade will completely change,” he said. arguedCiting monthly charts.
In September 2025, Merks declared Bitcoin’s four-year price cycle “dead”, a story that has continued to gain popularity.
“The price of $BTC in gold shows each cycle weaker than the previous one, and now mirrors the first 4 years of losses,” he said. wrote In those days.
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