Is Crypto Losing the Debasement Trade? Bitcoin Dips as Gold and Silver Hit Record Highs

Gold Surges, Bitcoin Pulls Back — What’s Really Happening?

While gold and silver dominate headlines after reaching all-time highs, Bitcoin has dipped below $87,000, raising an important question for investors watching the debasement trade unfold:

Is crypto losing its shine — or is this simply the perfect dip before the next leg higher?

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Let’s break down the most important crypto developments from the last 24 hours and what they could mean moving forward.

Crypto Market Update: Prices Drift Lower on Thin Holiday Volume

The total cryptocurrency market capitalization currently sits around $3 trillion, down slightly amid subdued post-holiday trading volumes.

  • Bitcoin (BTC) is trading near $87,500, down roughly 1.5% on the day

  • Ethereum (ETH) is hovering just under $3,000, showing similar mild weakness

  • Altcoins such as XRP and Dogecoin followed suit with modest declines

At the same time, capital has been flowing aggressively into precious metals, driven by geopolitical tensions, currency debasement concerns, and renewed demand for hard-asset hedges.

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$27 Billion Options Expiry Highlights Market Resilience

Yesterday marked one of the largest crypto options expiries in history, with approximately $27 billion in Bitcoin and Ethereum contracts expiring on Deribit.

Despite concerns heading into the Boxing Day expiry, the event passed without a major crash. Volatility increased temporarily, but the market held together — an encouraging sign of growing maturity and resilience, even during thin holiday liquidity.

This reinforces a key trend:
Crypto markets are increasingly able to absorb large structural events without systemic stress.

Security Alert: Trust Wallet Chrome Extension Exploit

On the security front, Trust Wallet confirmed an exploit tied to a vulnerable Chrome extension, resulting in more than $7 million in losses across multiple chains.

In response:

  • Changpeng Zhao (CZ) announced that Binance, which owns Trust Wallet, will fully reimburse affected users

  • The incident serves as another reminder that self-custody still carries real operational risk, especially when browser extensions are involved

Security remains a critical pillar of long-term crypto adoption — convenience should never come at the expense of protection.

Bitcoin & Ethereum ETFs See Continued Year-End Outflows

Spot Bitcoin and Ethereum ETFs have continued to experience outflows, with over $175 million exiting Bitcoin funds alone earlier this week.

This trend is largely driven by:

  • Year-end tax-loss harvesting

  • Bitcoin remaining approximately 30% below its prior peak

  • Investors offsetting gains while preparing for potential early-2026 repositioning

Historically, these periods of ETF outflows often precede renewed institutional accumulation once calendar-driven selling pressure fades.

Market Sentiment: Fear Dominates as Capital Shifts

Overall sentiment remains cautious, with the Crypto Fear & Greed Index firmly in fear territory.

While gold and silver are currently outperforming, many analysts are watching for:

  • Renewed institutional inflows

  • Improved regulatory clarity

  • Stronger macro tailwinds heading into early 2026

This divergence between crypto and metals may prove temporary — especially if liquidity conditions begin to ease.

Final Thoughts: Is This a Setup for the Next Crypto Move?

That’s your 24-hour crypto market update.

While precious metals are stealing the spotlight today, crypto continues to quietly build structural strength beneath the surface. The market never sleeps — and neither do the forces shaping the future of money.

We publish a crypto news video and blog every morning and a deep dive every afternoon. Let us know in the comments what topics you’d like us to cover next.

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Quick Disclaimer

I’m not a licensed financial advisor. This content is for educational purposes only and does not constitute financial or investment advice. Crypto is volatile — never invest more than you can afford to lose, and always do your own research.

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