The core of this article is that spot silver has broken through the historical high of $55/ounce, and the underlying logic can be broken down into three points:

1. Direct driver: Expectations for a Fed rate cut in December have risen (currently the market bets on a probability exceeding 85%), reducing the holding cost of non-yielding assets (silver);

2. Supply and demand support: Silver has experienced a supply deficit for five consecutive years, coupled with growth in industrial demand such as photovoltaics and electronics, resulting in tight spot inventories;

3. Emotional catalyst: Silver has been classified as a critical mineral in the U.S., and potential tariff risks have prompted traders to rush in, while ETF funds continue to flow in.

The impact on **the cryptocurrency market** is mainly divided into two aspects:

Short term: Capital diversion + differentiation of risk aversion sentiment

• Capital siphoning effect: The surge in silver may attract some funds that were originally allocated to cryptocurrencies (especially from investors with lower risk appetite) to shift, for example, when Bitcoin plummeted in November, funds flowed into the precious metals market;

• Competition for safe-haven attributes: The “traditional safe-haven” label of silver (and gold) is strengthened, which may weaken the narrative of cryptocurrencies as “digital gold” — currently, Bitcoin is still highly correlated with U.S. stocks, and its safe-haven attribute has not been fully recognized by the market.

Medium term: Emotional linkage + structural opportunities

• Risk appetite resonance: If the Fed's rate cut materializes, the overall liquidity easing environment will simultaneously benefit risk assets (including cryptocurrencies), and silver and the cryptocurrency market may exhibit a synchronous strengthening emotional linkage;

• Sub-segment opportunities: The “industrial + financial” dual attribute of silver may enhance the attention on **tokenized precious metals (such as silver-backed stablecoins)**, which possess both the value support of silver and the trading flexibility of cryptocurrencies.

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