The AI frenzy rewrites the flow of funds: Why are Bitcoin weakening while silver and gold continue to outperform?

January 28 News, the US dollar has recently continued to weaken. This change is not entirely market-driven. Over the past year, the Federal Reserve has repeatedly adjusted monetary policy, releasing liquidity to the market through rate cuts and asset operations, which has continuously suppressed the US dollar index. As the dollar index falls to multi-month lows, the attractiveness of traditional bonds diminishes, and the logic of capital allocation has also changed accordingly.

Historical experience shows that a weakening dollar often benefits risk assets. Previously, during the spring and summer of 2025, while the dollar index significantly retreated, Bitcoin once surged sharply, reaching a cyclical high. However, after entering the current cycle, the market has shown a different pattern of divergence.

Research from The Kobeissi Letter points out that silver prices have significantly outperformed Bitcoin over the past year, with gains reaching historically rare levels, while Bitcoin experienced a pullback during the same period. Gold also performed strongly, and the relative strength indicator of Bitcoin to gold fell to multi-year lows, indicating a substantial shift in capital preferences.

From an emotional perspective, this divergence often indicates that investors’ risk tolerance is decreasing, and funds are more inclined to allocate to assets with higher certainty. But the deeper reason is not just the rising demand for safe-haven assets.

Analysts believe that artificial intelligence is becoming a key variable in changing capital flows. Data from the United Nations Conference on Trade and Development shows that global investment in AI-related data centers in 2025 has grown significantly, exceeding $270 billion. Supporting this wave is the ongoing demand for computing power, energy, and basic raw materials.

Against this backdrop, the metal markets are among the first to benefit. Silver, gold, and copper are regarded as indispensable parts of AI infrastructure. Research institutions expect that in the coming decades, AI will significantly boost copper demand, with potential supply and demand gaps being priced in advance.

Therefore, the current flow of funds from Bitcoin and other cryptocurrencies to precious metals is not simply a short-term emotional shift but more of a strategic adjustment toward long-term industrial trends. This change suggests that the performance divergence between cryptocurrencies and industrial metals may no longer be just a temporary phenomenon but a precursor to a new round of macrostructural transformation.