Gold and Silver Hit Record Highs: Here’s When Capital Could Shift Back to Crypto

Gold and silver continued their record-breaking rally today, with both precious metals surging to new all-time highs.

As capital continues to flow into precious metals, investor focus is shifting to whether and when this momentum could spill over into crypto assets, which have so far remained under pressure.

Gold and Silver Prices Hit Record Highs

Gold prices surged 2.6% over the past day, reaching a record high of $5,597 per ounce during early Asian trading hours. Silver also extended its advance, rising 1.3% to a peak of $119.3 per ounce, as the ongoing rally in precious metals continued.

The former metal has now gained around 28.6% year to date. Silver has outperformed, posting gains of over 65% over the same period, reflecting sustained demand.

The strength has extended beyond precious metals. Copper prices have also climbed to fresh record highs, rising another 9% this month. At the same time, aluminum rose to its highest level in nearly four years, highlighting broad-based bullish sentiment across the metals complex.

However, the rapid advance has been accompanied by notable volatility, as evidenced by sharp intraday swings.

“Gold futures just both rose +$120/oz and fell -$100/oz in a total of 20 minutes. That’s a $1.5 trillion swing in market cap in 20 minutes. This is the world’s safe haven asset, moving like crypto,” The Kobeissi Letter wrote.

When Capital Rotation From Gold and Silver Could Begin

Meanwhile, BeInCrypto reported that precious metals are drawing capital and retail attention away from crypto assets, as investors adopt a more cautious stance. Market participants are now closely watching for signs of when this capital could rotate back into digital assets.

Milk Road pointed to a market pattern that hints at when the rotation might take place. The post noted that Bitcoin has followed gold’s price movements with an approximate six-month lag.

“Everyone’s watching BTC sit dead flat while gold rips to new highs. The surface read is that crypto is failing while hard assets win. But there’s a pattern hiding in plain sight that @RaoulGMI just reiterated in our chat yesterday: Whatever gold does, $BTC tends to mimic ~6 months later,” the post read.

If this pattern holds, Bitcoin could be positioning for a significant catch-up move. Thus, analysts are closely monitoring the roughly 180-day window, with momentum potentially emerging as early as the second quarter.

When it comes to silver, Ash Crypto observed that the BTC/silver ratio may be nearing a bottom. According to him, past market cycles show the ratio typically bottoms about 13 months after its peak with drawdowns of 75-85%.

The current cycle has now lasted 12 months with a 78% decline, a range that historically signals a reversal could be close.

However, Charles Edwards of Capriole Fund offered a more cautious view, warning against assuming an imminent peak in precious metals.

“Don’t sell your winners to buy your losers – a classic saying that rings true today. Could this be the Gold top forming? Maybe, but probably not. Even if it is, it’s normally best to wait for some technical or fundamental weakness to confirm your bias, as opposed to trying to time the impossible top, and sell with no supporting evidence because $5000 is ‘a round number.’ We’ve already climbed another 6% since,” he said.

Edwards also emphasized that bubbles can persist far longer than many expect, citing Bitcoin’s history as an example. He added that gold and silver have historically experienced long-duration bull markets, often lasting between five and ten years, suggesting the current rally, now roughly 18 months old, may still have room to run.

While opinions remain divided on how long the precious metals rally can last, the implications for crypto markets are becoming harder to ignore. Gold and silver have added trillions in market value in a relatively short period, and even a modest rotation of capital could have an outsized impact on Bitcoin and broader digital assets.