Silver soared to $63 an ounce, setting a new historical high. Against this backdrop, the crypto market dropped by 2.74% over the day, with all coins in the top 20 showing losses.
Such a sharp break in dynamics hints at a change in capital flows. Usually, such a movement is considered a classic signal of risk aversion, although some analysts believe that the situation may indicate the opposite.
Why is the price of silver rising?
Silver continues its confident upward trend and today updated another maximum, reaching a new record in the first hours of Asian trading. According to Companies Market Cap, silver is currently ranked sixth among global assets with a capitalization of $3.5 trillion.
Analysts from The Kobeissi Letter note that the metal is heading for its strongest twelve-month growth since 1979.
Their commentary states that the current surge makes the dynamics of 2020 and 2008 almost imperceptible. According to them, a new era of monetary policy is beginning.
As the rally accelerates, investors are once again turning to safe-haven assets. But why has demand for silver surged so sharply? According to trader Michael, it's not just about the usual increase in demand. He called the current spike 'desperation.'
He noted that funds backed by physical silver absorbed over 15.3 million ounces in four days. This became the second-largest weekly inflow in 2025.
Moreover, Michael noted that this figure has almost equaled 15.7 million ounces, which funds accumulated throughout November.
He added that silver ETFs are heading for their tenth consecutive month of inflows, which has only happened during times of systemic stress.
The world's largest silver fund SLV received nearly $1 billion in investments last week, even surpassing inflows into leading gold ETFs. According to Michael, the reasons for silver's rapid rise go much deeper than retail frenzy or fear of inflation. He stated that the global monetary system is quietly and rapidly losing trust from within.
From his point of view, silver turned out to be the only asset at the intersection of two crises. The first is related to the increasing race for hard assets amid rising government debt, which is approaching critical levels. The second is caused by a persistent industrial deficit driven by the development of AI infrastructure, the expansion of solar energy, the growth of the electric vehicle market, and the demand for semiconductors.
The trader emphasized that when financial uncertainty meets physical scarcity, the price of silver doesn't just rise. It begins to detach from usual market logic, reflecting a deeper fracture rather than a typical rally.
The gap in dynamics in 2025 continues to grow.
While silver is updating records, the crypto market is showing the opposite dynamics. The largest cryptocurrency has lost more than 2% in a day and continues to move in a downward trend.
Analyst Maarten noted that in 2025, silver became one of the best assets on the market, even outpacing gold. Bitcoin, on the other hand, noticeably lags not only behind precious metals but also major stock indices, including S&P 500 and Nasdaq.
Economist Peter Schiff added that over the past four years, Bitcoin has significantly lost ground relative to silver. According to him, Bitcoin has lost more than half of its value when measured against silver.
This indicates a rise in risk-off sentiment. When uncertainty rises in the market, investors typically choose traditional safe-haven assets. Silver and gold have performed this role for centuries.
However, some analysts view the current rally of silver not as a flight from inflation but as a sign that the market is ready to take risks again. Crypto analyst Ran Neuner offers an opposing view and believes that the conditions are currently favoring risky assets. His stance challenges the classic explanation for the rise of precious metals.
He believes that the market has already transitioned into a phase of active demand for risk, it's just not visible against the backdrop of Bitcoin remaining in a sideways trend. Silver is at historical highs, the asset is breaking above and growing at a fast pace. According to him, silver acts as a beta version of gold and shows that the market is geared towards risk.
Neuner also noted the rise in the ETH/BTC ratio, which has risen above its simple moving average for 50 weeks. This indicates a return of interest to the crypto market. Additionally, he highlighted the upward movement of the Russell 2000 index and the recent decision of the Federal Reserve, which collectively indicate a broad recovery in risk demand.
In his opinion, soon Bitcoin sellers will run out, and a catch-up movement will begin. He is confident that all signals point in one direction.
Other analysts also expect that interest in Bitcoin will rise again. Whether this forecast is accurate depends on the development of market conditions and whether demand for crypto assets will revive.
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