Bitcoin has struggled to gain momentum in early 2026, falling behind a sharp rally in gold that has pushed the precious metal’s market value toward $34 trillion.
The slowdown comes as speculation grows over who will replace Federal Reserve Chair Jerome Powell. BlackRock fixed-income chief Rick Rieder has emerged as a surprise favorite, according to prediction markets, drawing attention from crypto and traditional investors alike.
Rieder has previously said bitcoin could replace gold in many roles due to its digital nature and ease of transfer. His rising odds to lead the Fed have fueled debate over how future monetary policy could affect crypto markets.
Bitcoin has remained below key price levels despite expectations that interest rates may fall later this year. Analysts say weaker exchange-traded fund inflows and a lack of new catalysts have limited upside so far.
Gold, by contrast, has surged to around $5,000 per ounce. Investors have flocked to the metal amid concerns about government debt, political pressure on the Fed, and expectations of rate cuts in 2026.
Market analysts say falling rates could eventually push capital out of cash and into alternative assets. However, bitcoin has so far lagged as volatility declines and traders favor more established safe havens.
BlackRock continues to play a major role in crypto adoption. Its bitcoin ETF has grown rapidly since launch and now holds hundreds of thousands of bitcoin on behalf of investors.
Analysts say the next move for bitcoin may depend on clarity around Fed leadership and interest rate policy. For now, markets are watching whether crypto can catch up to gold’s historic run.
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