Silver Soars 190% Against Bitcoin — Will Funds Rotate Into Crypto?

• Gold and silver prices have surged, while Bitcoin remains range-bound.
• Analysts cite past cycles where metals rallied before capital rotated into Bitcoin.
• Recent crypto market moves suggest early signs of a possible shift.

Gold and silver prices surged in late-year trading while Bitcoin remained largely flat. Analysts note that in previous cycles, metals rallied before Bitcoin began major moves. Investors are watching closely for early signs of capital rotation into cryptocurrencies.

Gold and silver have posted strong gains, drawing attention across markets. Adam Livingston highlighted long-term performance, noting that since 2015, silver gained 405%, gold 283%, and Bitcoin 27,701%. He emphasized that Bitcoin remains the “apex asset” despite metals’ short-term gains.

Related: China Tightens Silver Exports as Bitcoin Sees Whale Activity

Daan Crypto Trades also commented on recent relative movements. He noted silver has surged +190% versus Bitcoin in just four months, while Bitcoin took 1.5 years to post a similar move in 2024–2025. The pattern reflects the cyclical nature of metals and crypto.

Elsewhere, Michael van de Poppe highlighted market conditions, saying year-end volatility and low liquidity are creating opportunities. He pointed to rising premiums on silver in Dubai, trading around $91, as an example of tight supply affecting prices. 

Van de Poppe also expects Bitcoin could test $90,000 and move toward $100,000 as capital rotates. For context, Bitcoin trades at $89,537, a 2.1% uptick in the past 24 hours, reducing its monthly loss to 1.2%. 

Analysts point to past cycles where metals typically led Bitcoin rallies. Bull Theory referenced the period after March 2020, when gold rose from approximately $1,450 to $2,075 and silver increased from $12 to $29. 

During the same period, Bitcoin remained range-bound around $9,000 to $12,000 for several months. Once precious metals peaked, Bitcoin began a sustained rally from $12,000 to nearly $65,000 by May 2021, while the total crypto market capitalization expanded significantly.

Today’s metals rally echoes that period. Gold is trading near $4,550 and silver around $80, while Bitcoin has been consolidating after a major liquidation event in October. Bull Theory argues that the metals-first trend is historically a bullish signal for Bitcoin, suggesting that capital rotation into crypto may follow once metals pause.

Structural Differences This Cycle

Unlike the 2020 cycle, several additional factors could amplify the next Bitcoin move. Renewed liquidity injections and expected rate cuts are supporting markets. Regulatory clarity and improved access to crypto for institutional investors have enhanced market structure. 

Spot crypto ETFs, including altcoin-focused products, are expanding, while political measures such as proposed dividend cheques may further boost liquidity. Bull Theory highlights that these overlapping catalysts provide more fuel for potential crypto rallies than in previous cycles.

Early Signs of Rotation Emerge

Recent trading indicates the start of capital rotation. Bull Theory reported in a separate post that Bitcoin surged $2,600 in a few hours, reclaiming the $90K level, triggering more than $102 million in short liquidations. 

The total cryptocurrency market capitalization reclaimed $3 trillion, while gold and silver dipped modestly. Analysts view this as an early signal that funds may be shifting from metals into Bitcoin and other digital assets.

Related: Analyst Consensus Turns Bearish on Bitcoin, AI Sentiment Tracker Flags Caution