Gold Surges Past $5,500 as Sentiment Hits “Extreme Greed,” Bitcoin Trails Below $90K
Gold’s rally is starting to feel more like a crowded trade than a steady trend. The yellow metal pushed past $5,500 an ounce late Wednesday, adding roughly $1.6 trillion in notional value in a single day—about the size of bitcoin’s entire market capitalization. While this “market cap” comparison is based on above-ground gold supply rather than a float-adjusted measure, it underscores the mood: cash is flowing to the traditional hedge first in a classic debasement trade.
Sentiment readings reflect the split. JM Bullion’s Gold Fear & Greed Index, which measures physical premiums, spot-price volatility, social media tone, retail buying, and Google Trends interest, is now flashing “extreme greed.” By contrast, crypto’s own fear-and-greed gauges have remained in the opposite zone for much of the month.
Silver is contributing to the momentum in precious metals, posting sharp weekly gains and intraday swings that resemble a positioning squeeze rather than gradual accumulation.
Bitcoin, on the other hand, remains range-bound in the high-$80,000s, still well below its October peak. Despite metals ripping higher, BTC continues to trade like a high-beta risk asset, reliant on clean liquidity and a clear catalyst. That challenges the narrative many crypto investors lean on—that bitcoin acts as digital gold when confidence in fiat and fiscal policy wavers.
The divergence doesn’t invalidate bitcoin’s long-term thesis. It has outperformed most assets over longer periods and can rally quickly when capital flows return. But recent weeks highlight that “store of value” depends as much on who is buying and why as it does on the narrative. Right now, the marginal buyer seeking shelter is choosing bars and coins—not tokens and wallets—and bitcoin is being asked to prove its case once again.
