Why Silver's Surge Echoes Crypto Altcoin Season: Bitwise Exec
Investor behavior in gold and silver currently mirrors patterns seen in past crypto market booms. As gold's price and market cap surge—up 80% over the past year to approach $5,000/oz and a $34 trillion cap—investors are rotating profits into silver, which has jumped 228% to over $100/oz and a $5.6 trillion market cap. This parallels altcoin cycles, where profits from major assets move into riskier, smaller assets in search of higher returns. The wealth effect is fueling this dynamic, as newfound gains encourage further risk-taking. Other precious metals like cobalt and palladium have also doubled in value. In crypto, major assets like Bitcoin dominate ($1.8 trillion, 58% market share), but smaller coins such as Ethereum, Solana, and XRP (collectively $453 billion) remain more volatile. Trend spillovers can lead to speculative mania, illustrated by record NFT purchases, like an EtherRock sold for $843,000. The evolving market landscape, including new spot ETFs, influences how capital rotates between major and minor assets. While Bitcoin’s market share is still watched as an indicator, shifts between assets remain an enduring trait of bullish markets.
