Over the past few months, cryptocurrencies have trended opposite to gold and silver, while precious metals have surged to record highs in 2026.
Investors in the UAE and the wider region are increasingly reallocating funds from cryptocurrencies into safe-haven assets like gold and silver, citing the extreme volatility and recent sharp declines in digital currencies, analysts say.
“Indeed, investors are shifting from crypto to gold and silver. Cryptocurrencies were very attractive recently, and retail investors in particular tend to follow the hype. Many who expected Bitcoin to continue rising have now exited their positions and turned to commodities, hoping to offset crypto losses,” said Wael Makarem, lead financial markets strategist at Exness, in an interview.
However, Makarem cautioned that it remains uncertain how long this trend in portfolio reallocation will continue.
Bitcoin’s steep correction has sharply contrasted with the rally in precious metals. After reaching a record high of nearly $125,000 in October 2025, Bitcoin tumbled to around $63,000, before recovering slightly to about $67,000 on Tuesday evening.
In contrast, gold and silver surged to record highs last month, surpassing $5,500 and $120 per ounce, respectively.
Financial institutions remain optimistic on gold, buoyed by strong central bank purchases, US Federal Reserve interest rate cuts, and ongoing geopolitical tensions. Analysts had initially projected gold would reach $5,000 in 2026, a milestone it crossed in January before climbing past $5,500 last month.
JPMorgan Chase forecasts that gold will stay bullish through 2026 and 2027, with prices potentially hitting $6,000, while UBS has set a $6,200 target for the metal in 2025.
Konstantinos Chrysikos, director of customer relations at Kudotrade, noted that digital assets have been under sustained pressure due to multiple factors, including China’s renewed regulatory crackdown and alleged crypto links connected to Jeffrey Epstein.
“China introduced a stricter regulatory framework, which weighed heavily on cryptocurrencies. Then the Epstein-related scandal in the US further dampened investor sentiment, driving prices to unexpectedly low levels. Another key factor was large holders liquidating positions, likely to free up capital for other cryptocurrencies, equities, or even gold,” Chrysikos said in the interview.
On Tuesday, for instance, Harvard University reduced its Bitcoin holdings and diversified into Ethereum.
While Chrysikos acknowledged that short-term asset performance is difficult to predict, he said he currently favours precious metals and commodities over cryptocurrencies.
