Gold breaks above $5,000 as Bitcoin price falls below $86,000

Gold climbed above $5,080 for the first time on record, widening its divergence from Bitcoin, which slid below $86,000 over the weekend. The gap between the two assets continues to grow amid geopolitical tensions and the threat of a U.S. government shutdown.

Gold has risen 17% since the start of the year and 83% over the past 12 months. Investors are moving into safe-haven assets amid concerns the U.S. government may face a shutdown. Prices were further supported by new tariff statements from the Donald Trump administration, including a threat of 100% duties against Canada tied to trade disputes involving China.

The rally also closed one of the most watched prediction markets: gold beat Ether in the race to reach $5,000. ETH, by contrast, has lost momentum and dropped below $2,800 — more than 40% below its August all-time high.

Silver also surged, rising above $107 per ounce for the first time and gaining 48% year-to-date.

Bitcoin, meanwhile, came under pressure. The asset fell 1.6% over the past day to a five-week low near $86,000, wiping out its early-year gains. It now trades roughly 30% below its October peak of $126,000. The long-standing positive correlation between BTC and gold has nearly disappeared.

Analysts attribute the moves to heightened uncertainty: investors are choosing gold over Treasuries. Expectations that the Federal Reserve will hold rates steady remain high — supported by a strong labor market and resilient economic growth. That dynamic reduces the appeal of BTC, which is sensitive to monetary policy conditions.

Market participants note that Washington’s tariff rhetoric is amplifying global risk and driving capital toward precious metals rather than higher-risk digital assets.

At the same time, the crypto sector is facing pressure after a wave of sell-offs, losses in altcoins, and rising market volatility.

The widening gap between gold and Bitcoin is emerging as one of the key trends of early 2026. In the coming weeks, traders will be watching Fed commentary, the budget standoff, and the trajectory of trade negotiations — factors that could continue pushing gold higher while adding pressure to the crypto market.