Source: Kitco NEWS | Date: January 26, 2026

Key Takeaways

Gold's current rally to $5,000+ isn't driven by traditional debasement/inflation factors, but by a fundamental breakdown in geopolitical trust starting with Russia sanctions in 2022
Bitcoin is currently touching the 200-week moving average when priced in gold, historically a strong buying opportunity in its 4-year cycles
The banking system faces existential threat from yield-bearing stablecoins, which could eliminate need for traditional deposit/payment functions
Central banks accumulating gold at record rates while nations scramble to find trustworthy store of value alternatives
Market dynamics show different buyer profiles: gold attracts "doomsday scenario" investors while Bitcoin appeals to "optimistic futuristic" mindset

Market Views

Bitcoin expected to remain "cheap" through 2026 before next cycle upturn, with potential 18-month high cycle completing in October 2025
Trump administration pushing for 1% interest rates and more dovish Fed policy as major Bitcoin tailwinds
Ray Dalio's "rock and hard place" scenario: government must choose between sovereign debt crisis/deflation or money printing/inflation
Price prediction: Expects $6,000 gold before $200,000 Bitcoin in near term
MicroStrategy trading at 1x book value vs expected 3-4x multiple, suggesting significant undervaluation

Gold: Hit $5,000/oz, driven by trust breakdown rather than traditional inflation hedge
Silver: Trading at $104/oz
Bitcoin: Currently around $87,000, down from recent highs but at historically attractive levels
MicroStrategy (MSTR): Holding 709,000 Bitcoin at $75,979 average cost, trading at steep discount to fair value
Stablecoins/Tether: Major gold accumulator, using diversification strategy for treasury backing

"From 2020 to 2024, gold didn't move at all during record debasement and 9% inflation, while Bitcoin went up 800%"
"We're seeing trust disintegrate from individual level all the way up to nation states who can't trust each other anymore"

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