Bitcoin breached the $60,000 threshold on Wednesday, its lowest level since early 2025, as a broad unwinding of the so-called 'debasement trade' swept across crypto and precious metals. The selling accelerated after South Korean memory chip giant SK Hynix filed to raise nearly $30 billion in a U.S. offering, signaling that capital continues to flood into artificial intelligence-related investments.
Gold and silver have both fallen steeply from their 2025 peaks as markets price in the likelihood of further Federal Reserve rate hikes. The macro backdrop has sapped demand for non-yielding assets, with the 'debasement' thesis—which held that monetary expansion would drive hard assets higher—now appearing to reverse, according to CoinDesk.
Despite the rout, digital asset manager 21Shares maintains its bullish long-term outlook. The firm conceded that Bitcoin's four-year cycle remains intact after the latest drop below $60,000, but still forecasts a return to $100,000 by year-end. The conflicting signals highlight deepening uncertainty: traditional safe havens are hemorrhaging value while tech-linked equities and AI plays continue to attract inflows.
Critics warn that the AI trade itself may be overheated. If earnings from chipmakers or cloud providers disappoint, the rotation out of crypto and metals could prove premature, leaving investors exposed to a whipsaw in both directions.