Bitcoin Just Lost its Volatility Premium Against Silver: Expert

Key Insights:

• Bitcoin recently lost its volatility premium against Silver as per a Bloomberg analyst.
• The largest cryptocurrency has faced intense selling pressure since reaching its all-time high in October.
• Meanwhile, Silver has been making headway to new all-time highs and recently hit the $84 mark on December 29.

Bitcoin has been under steady selling pressure since reaching its all-time high of $126,000. The rally stalled quickly, sending BTC down to $80,537, which represents a 36% drop in less than two months. According to Bloomberg, this sharp fall caused the volatility premium for Bitcoin to drop against that of Silver.

Bitcoin Price Slows Down as Silver Gains Momentum

Bitcoin tried to crawl past $90,000 level early December, but the rally quickly lost steam with another attempt around the close of the month. Experts weighed the possibility of Bitcoin closing above $93,500 and ending 2025 on a green candle.

Unfortunately, every attempt to break past $94,000 ran into resistance as the largest cryptocurrency reversed back towards the upper $80,000 levels.

On the other hand, the second largest metal, Silver, charted a different path with prices climbing steadily since the October crypto crash. As BTC USD and the majority of cryptocurrencies struggled, Silver made headway to a new all-time high with the rally culminating at $84 in December.

Silver Outpaces Bitcoin’s Risk Premium

Bloomberg strategist Mike McGlone recently highlighted that Bitcoin and silver have been moving very differently. He looked at the Bitcoin-to-silver ratio and how much each one moves up and down over 260 days.

According to him, Bitcoin’s ups and downs had slowed to match silver’s. At the same time, the ratio between them hit 1.0, which had never happened before.

Bitcoin-Silver Ratio Shows Strong Support

The Bitcoin-to-silver ratio dropped toward a key long-term support level near 1,000x after Silver jumped to $84 on December 29 as Bitcoin struggled to make gains.

Historically, the 1,000x level has served as a reliable floor. In past cycles, including 2018–2019 and 2022, the ratio’s approach to this zone coincided with easing selling pressure on Bitcoin. Each time, the pause helped set the stage for longer-term recoveries.

The turning points occurred as volatility eased and not during sharp spikes. McGlone noted this pattern to illustrate that BTC USD is holding support while risk conditions are relatively calm. Historically, such conditions have often triggered trend reversals.

Silver’s failure to break past $84 also helped Bitcoin maintain the 1,000x ratio support. Both assets now sit near key technical levels instead of chasing extreme moves.

If BTC USD can regain even a small volatility advantage from this point, the ratio could widen again. This would allow Bitcoin to outperform silver without relying on extreme speculation.

In a separate analysis, McGlone compared the Bloomberg All Metals Total Return Subindex with the Bloomberg Galaxy Crypto Index. He found that metals have regained strength in 2025, with the ratio rising from around 13 to nearly 28 by year-end.

The S&P 500 has been more unpredictable than it was in 2021. McGlone says this kind of market usually helps metals do better than riskier assets like crypto. With prices moving up and down but not wildly, he expects metals to keep outpacing crypto as 2026 nears.

BTC USD, on the other hand, is facing a tricky stretch. It keeps hitting resistance above $90,000 and hasn’t been able to break through. Analyst Lennaert Snyder points to $86,900 as an important support level. Bitcoin recently tested that spot and is now trying to stay above it.