Precious Metals Lead the ‘Santa Rally’: Is Rotation To Crypto Still Possible?

Another day, another all-time high for precious metals. Gold, silver, and platinum all reached new record levels today.

Market experts view this surge as a warning signal, pointing to declining trust in financial systems and persistent inflation risks. Meanwhile, the crypto community is assessing whether this momentum in precious metals could eventually translate into capital rotation toward Bitcoin in 2026.

Gold, Silver, and Platinum Mark New All-Time Highs

According to the latest market data, gold surged past $4,500 for the first time today, setting an ATH at $4,526. At the same time, silver reached a peak of $72.7.

“Silver is up over a buck now, trading above $72.30. It looks like $80 is in play before year-end,” Economist Peter Schiff wrote.

Furthermore, platinum’s peak price was recorded at over $2,370. Palladium moved past the $2,000 mark, a level last seen in November 2022.

The surge spread beyond precious metals. Copper soared to $12,000 per ton for the first time, on track to record its largest annual gain since 2009. Nic Puckrin, investment analyst and co-founder of The Coin Bureau, told BeInCrypto that the stellar performance of precious metals has been driven by

“A combination of rate cuts, geopolitical tensions – which are resurfacing again this week with Venezuela – and, crucially, the dollar debasement trade.”

What the Precious Metals Rally Could Be Warning

While record prices have sparked optimism about continued upside, some analysts believe they may be concealing a far more troubling macro reality. Schiff argued that gold, silver, commodities, bonds, and foreign exchange markets are collectively signaling that the US is heading toward the highest inflation in its 250-year history.

His warning comes despite recent data showing US GDP growth of 4.3% in Q3, well above market expectations. However, the economist cautioned against taking official figures at face value.

“The CPI is rigged to mask price increases and hide inflation from the public,” he added.

Analyst Andrew Lokenauth warned that the rapid increase in silver prices is “rarely a good sign.” According to him, it suggests declining confidence in political leadership and fiat currencies.

“This happened right before the Fall of Rome, during the French Revolution, and when the Spanish Empire collapsed. It doesn’t only predict chaos, it often causes it. It triggers a massive transfer of wealth: the poor get left behind with worthless paper money and the rich protect themselves with gold and silver,” Lokenauth stated.

Meanwhile, the DXY has weakened significantly throughout 2025. As the year draws to a close, the index has once again fallen below 98.

“Dollar index fell to the lowest close since Oct 3rd,” Neil Sethi posted.

Otavio Costa revealed that the US dollar is approaching a critical turning point. He noted that the DXY began the year at one of its most overvalued levels on record before declining sharply to a key support zone that has held for roughly 15 years.

“That support has now been tested multiple times, particularly in recent months, and in my view we are approaching a significant breakdown — one that could carry profound implications for global markets,” he said.

The analyst mentioned that this comes as foreign central banks move toward tighter policy, while the Federal Reserve faces growing pressure to ease to manage rising US debt servicing costs. According to Costa, large trade and fiscal deficits are historically resolved through financial repression, a process that typically unfolds alongside a weaker dollar rather than a strong one.

From Gold to Crypto? Analysts Watch for Capital Rotation Into Bitcoin in 2026

Despite the DXY’s weakness, Bitcoin has continued to struggle. The asset has lagged behind both precious metals and technology stocks in 2025 and is on track to post its worst quarter since 2018.

BeInCrypto also highlighted that many new investors are currently favoring traditional stores of value over crypto exposure. Still, many in the crypto community remain hopeful that gold’s rally could eventually be followed by a similar move in Bitcoin.

Analyst Garrett noted that the upside in silver, palladium, and platinum appears driven by short squeezes, warning that such moves are unlikely to last.

“Once they start to reverse, they are likely to drag gold lower as well. The capital will rotate out of precious metals and into BTC and ETH,” he claimed.

David Schassler, VanEck’s Head of Multi-Asset Solutions, also predicts a comeback for Bitcoin in 2026. He believes the asset is positioned for a rebound as monetary debasement intensifies and market liquidity returns.

“Bitcoin is lagging the Nasdaq 100 Index by roughly 50% year-to-date, and that dislocation is setting it up to be a top performer in 2026. Today’s weakness reflects softer risk appetite and temporary liquidity pressures, not a broken thesis. As debasement ramps, liquidity returns, and Bitcoin historically responds sharply. We have been buying,” Schassler forecasted.

Lastly, Puckrin pointed out that Bitcoin reaching new highs in 2026 is not an unlikely scenario.

“Crucially, there’s still every possibility that Bitcoin will reverse course and hit new ATHs in 2026, while gold and silver may begin to lose some of their shine.

In the months ahead, markets will test whether precious metals can uphold record gains, or if expected profit-taking sparks the capital rotation.