Gold Hits Record $4,475 as Bitcoin Stalls Below $90,000 in Asset Rally Divergence

Investors are piling into gold and stocks, pushing precious metals to new records, while the crypto rally has hit a wall. Bitcoin failed to hold the $90,000 level during U.S. trading hours on Monday, December 22, highlighting a clear divergence in how investors are positioning themselves in the current market.

Gold was the day's standout performer, surging 2% to a fresh record high of $4,475 per ounce, according to market data. Silver also hit a new peak just under $70 per ounce. The risk-on sentiment extended to equities, with both the S&P 500 and Nasdaq advancing 0.6%.

In stark contrast, bitcoin (BTC) retreated to near $89,000 after briefly crossing the $90,000 mark during Asian and European trading. While still in the green over the past 24 hours, its performance continues to lag most major asset classes. Ether (ETH), solana (SOL), and other major cryptocurrencies followed a similar pattern, pulling back from earlier highs.

Bright Spot: AI-Pivoted Miners Surge on Alphabet Deal

While crypto prices stagnated, crypto-related stocks with a focus on artificial intelligence infrastructure delivered explosive gains. The catalyst was Alphabet's (GOOG) $4.75 billion deal to acquire AI infrastructure startup Intersect, fueling investor enthusiasm for companies with high-performance computing capacity.

• **Hut 8 (HUT)**: Soared 17.5%
• **IREN (IREN), Cipher Mining (CIFR), and Bitfarms (BITF)**: Posted gains between 5% and 10%.

This performance suggests investors are rewarding crypto-native firms that have successfully diversified into the high-growth AI sector.

The current market shows a 'flight to familiarity' in the inflation hedge trade. Investors are favoring gold's long-established history over Bitcoin's 'digital gold' narrative. However, the surge in AI-pivoted miners reveals a powerful secondary trend: the market is rewarding crypto companies that tap into tangible, high-growth sectors like AI. This effectively decouples their stock value from pure cryptocurrency price action, offering a potential diversification play for crypto-exposed investors.

"I reiterate the point that bitcoin and crypto are unlikely to shine until this bull market in precious metals comes to a pause," ByteTree analysts said in a Monday report. They noted that silver's recent parabolic rally has now nearly matched BTC's return over the past eight years, suggesting capital flows may continue to favor hard assets in the short term.