Silver prices recently reached a new all-time high of $63 per ounce, marking a significant milestone in the precious metals market. In contrast, the cryptocurrency market experienced a downturn, with a collective decrease of 2.74% in the last 24 hours. Almost all of the top 20 cryptocurrencies (excluding stablecoins) saw losses.
This performance disparity reflects a potential shift in global capital flows. While such movements are often interpreted as "risk-off" signals, some analysts suggest they could indicate a new trend.
Drivers Behind Silver's Surge
Silver's impressive growth continues, consistently reaching new highs in early Asian trading sessions. According to CompaniesMarketCap data, silver ranks sixth in global market capitalization, valued at $3.5 trillion.
The Kobeissi Letter suggests silver is on track for its best 12-month performance since 1979. The report emphasizes that silver's current momentum dwarfs the gains seen in 2020 and 2008, signaling a potential shift in monetary policy.
As silver prices rise, investors are seeking safe-haven assets. Trader Michael suggests the demand for silver isn't solely driven by supply and demand, but also reflects underlying "desperation."
He points out that physical silver ETFs have seen inflows of over 15.3 million ounces in just four days, the second-highest level in 2025. This figure nearly equals the total silver added in November.
Michael notes that silver ETFs are heading towards their tenth consecutive month of inflows, a pattern typically seen during times of systemic stress.
The largest silver ETF, SLV, attracted nearly $1 billion in the past week, surpassing inflows into major gold funds. Michael believes the drivers behind silver's surge extend beyond retail investor interest or inflation concerns.
He suggests that the global monetary system is quietly losing confidence, rapidly and internally. Silver is uniquely positioned at the intersection of two crises: a hunt for hard assets amid unsustainable public debt and a persistent industrial shortage due to demand from AI, solar energy, electric vehicles, and semiconductors.
According to Michael, when financial instability combines with physical scarcity, silver's price not only increases but also "decouples" from conventional trends, signaling a significant market disruption.
Silver vs. Bitcoin: A Widening Gap in 2025
While silver thrives, the cryptocurrency market continues its decline. Data from Coinphoton shows Bitcoin down over 2% for the day, extending its downward trend.
Analyst Maartun observes that silver has emerged as a top-performing asset in 2025, even surpassing gold. Bitcoin, conversely, is lagging behind precious metals and major stock indices like the S&P 500 and Nasdaq.
Economist Peter Schiff notes that Bitcoin has consistently depreciated against silver over the past four years, losing over half its value when converted to silver.
| Asset | Performance (YTD 2025) | General Trend |
| Silver | Up 107.36% (As of 12/12/2025) | Strong Increase |
| Bitcoin | Down 1.71% to 3.09% (As of 12/11/2025) | Slight Decrease |
This reflects a rising risk-off sentiment. As uncertainty increases, investors often turn to traditional safe-haven assets like silver and gold, choices with a proven track record.
However, some experts view silver's rise as a sign of risk appetite. Crypto analyst Ran Neuner offers a contrasting perspective, arguing that the market currently favors risk assets. This challenges the traditional view of precious metal rallies.
Neuner suggests the market is in full "RISK-ON" mode, which many haven't realized because Bitcoin hasn't increased. Silver is hitting all-time highs, breaking out, and accelerating, acting as a beta version of gold and signaling a risk-on trend.
Neuner also points to the ETH/BTC ratio surpassing its 50-week simple moving average, indicating renewed interest in cryptocurrencies. He cites the Russell 2000 breakout and the Federal Reserve's recent moves as evidence of a widespread risk-on environment.
Neuner predicts that selling pressure on Bitcoin will soon diminish, triggering a catch-up rally. He believes all data points in one direction.
Many experts anticipate a strong Bitcoin recovery soon. However, whether this holds true depends on market developments and the return of investor buying power in the near future.
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