Cryptocurrency bulls are once again on the sidelines as devaluation trade continues and risk assets generally move higher during the U.S. trading session.
The biggest performer on Monday was gold, which surged 2% to a new record high of $4,475 an ounce. Silver rose 1.6%, having earlier set a new record just below $70 an ounce.
Just after noon on the East Coast, the Nasdaq and S&P 500 were up 0.6% each, while the U.S. dollar index was down 0.3%.
After Bitcoin price topped $90,000 during the Asian/European trading session, It has retreated to close to $89,000, remaining in the lead over the past 24 hours but still lagging most major asset classes.
ether Solana and Monday was also in the green, but also off the highs hit before the U.S. open.
Artificial Intelligence trade remains strong
An examination of cryptocurrency-related stocks showed strong performance on Monday from Bitcoin miners that have pivoted to a business model focused on artificial intelligence infrastructure and high-performance computing.
Alphabet’s (GOOG) deal to acquire artificial intelligence infrastructure startup Intersect for $4.75 billion boosted sentiment in the sector. “This acquisition will bring more data centers and power generation capacity online faster while accelerating energy development and innovation,” Alphabet said.
Hut 8 (HUT) was the top gainer, rising 17.5%. IREN (IREN), Cipher Mining (CIFR) and Bitfarms (BITF) rose 5%-10%.
Elsewhere in the crypto space, Circle (CRCL), Coinbase (COIN), Bullish (BLSH) and Galaxy Digital (GLXY) lead by 2%-4%, while Bitcoin Treasury leader Strategy (MSTR) is up just 0.3%.
Bitcoin may not rebound until gold cools off
“I reiterate that Bitcoin and cryptocurrencies are unlikely to have a big run until the precious metals bull market pauses,” ByteTree analysts led by Charlie Morris and Shehriar Ali said in a report on Monday.
They note that despite current trends, Bitcoin has still outperformed the metals industry over the past few years.
However, silver’s continued parabolic rise now nearly matches Bitcoin’s returns over the past eight years.
Read more: Why gold will beat Bitcoin in 2025: Liquidity, trade and trust
