Bitcoin drops to 13th largest asset as capital flees to AI and precious metals
Bitcoin’s weak 2026 performance has coincided with sharp gains in metals and semiconductor giants, raising concerns that the cryptocurrency could continue losing ground.
What to know:
- Bitcoin is down 11% year to date and nearly 30% over the past year, while metals and semiconductor stocks have posted major gains.
- Gold surged to a record $5,600 per ounce in January before easing back to around $4,486, while silver climbed as high as $120 per ounce and now trades near $76.
- TSMC and Broadcom have overtaken bitcoin in market capitalization, while Micron Technology recently crossed the $1 trillion valuation mark amid the ongoing AI and semiconductor driven rally.
Precious metals were among the biggest beneficiaries during that period. Gold surged to a record $5,600 per ounce in January before easing back to around $4,486, while silver climbed as high as $120 per ounce and now trades near $76.
The rally in metals pushed silver to become the world’s fifth largest asset by market capitalization, highlighting strong demand for traditional safe haven assets amid continued economic uncertainty.
The ongoing boom in artificial intelligence (AI) and semiconductor stocks has significantly outpaced bitcoin’s performance. The so-called “Magnificent Seven” technology companies have continued to rally, with the Roundhill Magnificent Seven ETF gaining 33% over the past year.
Semiconductor leaders such as Taiwan Semiconductor Manufacturing Company (TSMC) and Broadcom (AVGO) have both surpassed bitcoin in market capitalization, each now valued at around $2 trillion, ranking eighth and ninth globally.
Micron Technology (MU) recently became the latest semiconductor company to cross the $1 trillion valuation threshold, while Samsung, valued near $1.3 trillion, now sits just behind bitcoin.
