Gold Surpasses $5,000 Mark as Bitcoin Declines

Gold prices have reached a remarkable high of over $5,000 amid escalating geopolitical tensions and concerns surrounding global trade. Bitcoin, in contrast, has dipped towards $86,000, showcasing an increasing disparity in trends between the two assets.

Gold’s all-time high of $5,080 was recorded Monday, with a notable 17% increase in value this year, according to Gold Price. Traders are gravitating towards gold as fears arise of a potential government shutdown in the U.S. and the Trump administration’s intensified tariff threats.

“A likely government shutdown just added fuel to the fire for precious metals,” said the Kobeissi Letter on Monday.

Trade tensions escalated further this weekend when President Donald Trump mentioned possible 100% tariffs on Canada in relation to negotiations over trade with China.

Gold surpassed Ether (ETH) in reaching the $5,000 milestone, concluding a Polymarket bet initiated earlier in October regarding which would hit the mark first. ETH’s value plummeted below $2,800 and fell over 40% from its all-time high of $4,946 achieved in August.

Silver prices also broke records, exceeding $107 per ounce and achieving a 48% rise in 2026.

Bitcoin and Gold Prices Diverge

Bitcoin (BTC) experienced a 1.6% decline recently, returning to its lowest point in five weeks at just under $86,000 on Coinbase. Currently, Bitcoin stands 30% below its peak of $126,000 from October, continuing the widening gap between it and gold.

Gold prices have surged by 83% since last year while Bitcoin has decreased by 17%. Source: Google Finance

Investors Favor Gold Over Treasuries

Gold’s rally and the downturn in cryptocurrencies can be attributed to the growing probability of a government shutdown by the end of the month, as noted by Jeff Mei, COO at BTSE.

“Markets are also adjusting to the Fed’s likely decision to keep interest rates steady due to signs of robust economic growth and employment rates,” Mei told Cointelegraph.

“In uncertain times, capital typically shifts toward safe-haven assets like U.S. Treasuries and gold. However, the fear of a government shutdown and recent tariff threats by Trump have made investors lean more towards gold,” he added.

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