Bitcoin (BTC), trading near $91,471 (around PKR 25.6 million), is increasingly losing its appeal as a hedge against currency debasement, as gold and silver continue to post fresh all-time highs. According to new market analysis, investors are favoring traditional hard assets over Bitcoin, pushing BTC’s value against gold to two-year lows and raising serious questions about the long-standing “digital gold” narrative.

Market analyst Karel Mercx of Dutch investment firm Beleggers Belangen argues that Bitcoin has failed to perform during a critical macroeconomic stress test. While precious metals surged amid concerns over U.S. monetary policy and pressure on the Federal Reserve, Bitcoin remained nearly 20% below its peak.

“The verdict is in: the debasement trade is gold and silver, not Bitcoin,” Mercx stated, adding that investors are clearly choosing physical hard money over what he called a “digital experiment.”

Measured in gold terms, Bitcoin has slipped below 20 ounces, signaling its weakest relative performance in nearly two years.

Gold’s rapid rise is also reshaping broader financial markets. Analysts such as Benjamin Cowen warn that gold’s strength against the S&P 500 could mark a structural shift in the global investment environment that has existed for over a decade.

Meanwhile, crypto analyst Michaël van de Poppe acknowledged growing pressure on Bitcoin bulls, noting that time may be running out for a strong rebound if capital continues flowing toward metals.

Mercx previously declared Bitcoin’s four-year price cycle “dead” in late 2025, pointing out that each cycle priced in gold has become weaker, with the current cycle showing the first ever four year loss.

The analysis suggests Bitcoin is no longer the first choice for investors seeking protection against fiat currency dilution. While long-term crypto supporters still expect BTC to catch up, current capital flows favor gold and silver, challenging Bitcoin’s role as a macro hedge.