Crypto markets ended the year on a somber note, with Bitcoin down about 6% year-to-date and Ethereum down roughly 12%. Bitcoin has fallen roughly 30% from its October high of around $126,000, trading near $87,000. Gold bulls, buoyant from record bullion prices, have mocked Bitcoin holders, suggesting now is the time to rotate into gold. The metal rally underscores a growing divergence as crypto assets retreat.
Despite the softer mood in crypto, some banks have taken a bearish stance on Bitcoin. Standard Chartered slashed its Bitcoin price target from $200,000 to $100,000 for year-end, and trimmed the 2026 target from $300,000 to $150,000, signaling a deeply negative outlook from major institutions. Yet not all see a one-way move; several analysts foresee potential upside in the near term.
Fundstrat’s Sean Farrell noted that the year-end losses have produced a “Santa Rally reversal,” but added that fresh capital entering in January could lift prices. 10X Research echoed this cautiously hopeful view, saying that after a 30% correction and a reset of technical indicators, now may be an appropriate time to pursue a sustained rebound. Despite these cautiously optimistic voices, metals’ outsized gains highlight ongoing questions about crypto’s role as “digital gold” in a shifting market.
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