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Gold, silver and bitcoin tumble as 'debasement' trade unwinds
CoinDesk • • business
Key Points:
- Gold and silver prices have sharply declined from their January 2025 highs, with gold down about 28% to below $4,000 per ounce and silver falling over 50% to under $59 per ounce.
- The sell-off is attributed to growing concerns over tighter monetary policy under new Fed Chair Kevin Warsh, with markets anticipating two rate hikes by March 2027 to combat inflation.
- This marks a reversal from the 2025 "debasement trade" narrative, which expected ongoing currency depreciation due to fiscal deficits and rising government debt.
- Bitcoin has also corrected significantly, dropping 50% from its October peak to below $62,000, raising questions about its role as a hedge against fiat currency inflation.
- Despite recent declines, Bitcoin has outperformed gold and silver since February but all three assets have underperformed U.S. equities, particularly in semiconductor and memory stocks, in 2026.
