The price of silver rose to $63 per ounce today, which is a new all-time record for this precious metal. At the same time, the cryptocurrency market dropped by 2.74% in the last 24 hours, and all top 20 coins, except for stablecoins, ended up in the red.
This clear difference in development signals a change in capital flows. While movements are often seen as a classic indicator of risk aversion, some analysts assess that it may be a completely opposite phenomenon.
Why is the price of silver rising?
The price rally of silver continued in a broader uptrend today, and early trading in Asia propelled it to a new record high. According to Companies Market Cap data, silver is now the world's sixth largest asset class, with a market value of $3.5 trillion.
According to recent comments from The Kobeissi Letter, the metal is currently on track for its strongest 12-month period since 1979.
'The current silver price rally makes the years 2020 and 2008 seem minuscule. A new monetary policy era is coming,' the publication noted.
As the price rally of silver accelerates, people are once again rushing to seek safe-haven assets. Why, then, is the demand for silver increasing? According to trader Michael, it is not just a rise in demand, but rather 'desperation.'
He emphasized that ETFs tracking physical silver have absorbed over 15.3 million ounces in four days. This was the second largest weekly investment of 2025.
Michael also pointed out that the amount is close to the 15.7 million ounces added throughout November.
'Silver ETFs are currently experiencing their tenth consecutive monthly investment, which has only happened before during periods of widespread systemic risk,' he added.
The world's largest silver ETF, SLV, reportedly received nearly a billion dollars in investments weekly, surpassing even the largest gold funds. According to Michael, multiple factors explain the rise of silver, not just the enthusiasm of retail investors or fears of inflation. Michael noted that
The 'global monetary system is quietly, quickly, and internally losing trust. Silver is the only asset at the intersection of two crises: 1. Transition to hard assets as government debt rises above tolerable limits. 2. Unrelenting industrial shortages driven by AI infrastructure, solar energy expansion, the adoption of electric vehicles, and demand for semiconductors.'
The trader emphasized that when economic uncertainty meets physical scarcity, the price of silver does not just rise but essentially 'detaches,' which he claims signals a deeper fracture than a typical market rally.
Silver vs Bitcoin: performance gap widens in 2025
At the same time, the lackluster development of the cryptocurrency markets stands in stark contrast to the strong rise of silver. BeInCrypto Markets data shows that the price of the largest cryptocurrency fell over 2% in the last 24 hours, continuing a broader downward trend.
Analyst Maartuni states that the year 2025 has clearly elevated silver to be the most significant riser, even surpassing gold. Bitcoin, on the other hand, has lagged behind these precious metals and major stock indices, such as the S&P 500 and Nasdaq.
'Over the last four years, Bitcoin's value measured in silver has collapsed. It has lost more than half of its value compared to silver,' economist Peter Schiff commented.
This indicates that the mood of risk aversion is growing. As uncertainty increases, investors flock to traditional safe-haven assets. Silver and gold have served in this role for centuries.
Still, some analysts view the silver price rally more as a sign of risk-taking than a flight to safety. Crypto analyst Ran Neuner presents this opposing view, suggesting that the market is now favoring riskier assets. His perspective challenges the traditional notion of the rise of precious metals.
'The market is now fully in risk-taking mode and most don’t see it because Bitcoin isn’t moving! Silver is at all-time highs. It has broken out and is accelerating further. Silver is Beta-gold and reflects the mood of risk-taking!' he noted.
Neuner also highlighted the rise of the ETH/BTC ratio above the 50-week simple moving average, indicating renewed interest in cryptocurrencies. He also referenced the breakthrough of the Russell 2000 and the latest pivot move by the U.S. Federal Reserve as evidence of widespread risk appetite.
'Soon BTC sellers will run out and a major short squeeze will begin. All data points in the same direction!' Neuner noted.
Other analysts also expect renewed demand for Bitcoin. Whether this view materializes depends on whether market trends continue in the same manner and whether cryptocurrency buyers return strongly in the near future.
