Bitcoin Lags Behind Gold as Dollar Trust Dips Before 2026 Change

Thu Jan 29 2026
Jim Andrews (696 articles)
Bitcoin Lags Behind Gold as Dollar Trust Dips Before 2026 Change

Bitcoin and crypto prices have been overshadowed by gold’s significant rally over the past year, although a major shock is anticipated in 2026. The bitcoin price has fallen below the significant $90,000 per bitcoin mark as turmoil surrounds the U.S. dollar. Now, As traders prepare for a potential shift from the Federal Reserve, experts are forecasting a “crisis of confidence” in the U.S. dollar, which could allow bitcoin to align more closely with gold. “There’s a crisis of confidence in the U.S. dollar,” Kyle Rodda stated in remarks. “It seems that as the Trump administration continues its unpredictable trade and foreign economic strategies, this vulnerability may endure.”

This week, U.S. President Donald Trump declared the dollar to be “great,” even as it approaches its most significant weekly drop since the market upheaval of last April’s “Liberation Day.” Trump’s remarks were interpreted by the market as an indication that dollar selling might escalate in anticipation of the Federal Reserve’s interest rate decision on Wednesday. “When the individual who could advocate for the currency appears indifferent, the perceived support for the dollar diminishes,” Anthony Doyle stated in remarks. “This may very well be the beginning of the next leg lower in the dollar, and many may not be prepared for it,” stated Stephen Jen. The decline of the U.S. dollar has propelled gold and silver prices to new all-time highs, whereas bitcoin, aspiring to establish itself as digital gold, continues to linger on the sidelines.

“With U.S. debt levels likely to rise further into the midterm election cycle, as Trump pushes targeted stimulus under a renewed affordability agenda, foreign investors are likely to continue diversifying away from the U.S. dollar,” Markus Thielen noted in an statement that the U.S. dollar is “breaking” and highlighted China’s easing stance on bitcoin and crypto. “Gold has been the primary beneficiary of this shift so far, but over time, bitcoin should also benefit, particularly if alternative reserve assets such as gold and silver become increasingly crowded and expensive.”

The bitcoin price continues its downward trend as we move further into 2026, yet long-term bitcoin price enthusiasts maintain their optimism that a recovery is on the horizon. “While bitcoin’s technical structure remains weak for now, the macro forces taking shape could carry far-reaching implications once a catalyst emerges,” Thielen noted, indicating that a “larger story is quietly developing in the background. When that spark is finally triggered, the repricing may not be gradual.”

Jim Andrews

Jim Andrews

Jim Andrews is Desk Correspondent for Global Stock, Currencies, Commodities & Bonds Market . He has been reporting about Global Markets for last 5+ years. He is based in New York