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Bitcoin’s recent underperformance compared to gold has caused disappointment among cryptocurrency investors, even as the financial environment appears to support the digital economy.
According to Thomas Perfumo, Global Economist at Kraken, The main thing affecting the cryptocurrency markets is not the interest rate, but the amount of money – and the money of the world remains strong.
“The recent poor performance of bitcoin compared to precious metals, especially gold, is disappointing for crypto investors,” Perfumo said.
At first glance, conditions seem favorable for Bitcoin. Low interest rates and rising political risk have already helped the economy, which is seen as a bulwark against deflation and political instability.
Perfumo believes that the reduction in interest rates alone was not enough to make big gains in the digital currency markets. He says: “Despite the drop in interest rates, international money, which has a significant impact on the activity of the digital currency market, remains low,” which shows that interest rates are only one part of the financial management system.
Gold continues to attract risk-free investments
While cryptocurrencies are struggling to regain momentum, gold has continued to gain by changing business sentiment and positive economic factors, especially with the weaker US dollar.
“In contrast, gold has already benefited from the weak US dollar,” Perfumo says.
Under the current situation, precious metals are attracting many people who are looking for stability, while the role of Bitcoin as a hedging tool has not been found in the eyes of market participants.
“Right now, gold is taking money from risk-averse investors,” Perfumo said.
Gold is up 66% in the last six months, while Bitcoin is down 25%. Experts say there are several reasonshttps://t.co/mQjM4jqhAm
– Cryptonews.com (@cryptonews) January 29, 2026
The growth of Bitcoin businesses is also changing its history
Perfumo also commented on the cultural change taking place within the Bitcoin market itself. As Bitcoin has grown into an institutional asset, the volatility that attracted retail investors has waned, replacing its appeal with smaller transactions.
“As Bitcoin has grown into an institutional asset, the volatility that attracted traders has diminished,” he said. Perfumo emphasizes that this change is not permanent, but it is a phase that requires patience as the market changes.
Which will encourage a refund
Although Bitcoin works slowly, Perfumo said that things can change quickly if the capital starts to return to digital money. “Any significant return on investment would force us to reassess our performance,” he said, adding that current business uncertainty could lead to major changes.
He emphasized a number of potential catalysts that can help return cryptocurrency flows, including the stability of long-term investor sales and progress on cryptocurrency market structuring laws in the United States. “Factors such as the stabilization of long-term sales and progress in the US market-making regulations may be a catalyst for this change,” Perfumo said.
At the moment, Bitcoin is still stuck between financial support issues and the reality of the currency shortage – while gold continues to appear as the preferred instrument for risk-averse investors.
A note Financial analyst at Kraken: Liquidity, not interest rates, is the only thing holding back Bitcoin’s rise, while gold is considered a safe haven. appeared for the first time Cryptonews Arabic.
