Silver and gold attract attention – Where is the money flowing in the market?

As silver reaches new record levels at $83, Bitcoin [BTC] seems to be falling behind in the race. The cryptocurrency remains below $90K while traditional safe-haven assets like gold continue to grow. This has become a common narrative among many analysts: the strength of metals is affecting BTC’s momentum, potentially leading to a correction that could open the way for crypto to rise again.

Expert Opinions: Silver, Gold, and Crypto Moving in Tandem

Garrett Bullish, the well-known “White House whale” in the crypto space, offers a deeper insight. In his analysis, the movements of silver and gold have peaked, indicating that the capitalized value is beginning to shift toward digital assets.

According to his optimistic outlook: “As the market opens, we see the start of capital flow into crypto. Despite selling pressure in traditional equities, crypto positions continue to increase.” He adds that a sudden Bitcoin short squeeze could push prices higher without a significant pullback.

Big Bets Behind the Crypto Surge

Garrett is not just an analyst – he has significant financial commitments in the crypto sector. Before the tariff decisions in October, he earned $160 million from short positions in BTC. Now, his portfolio reflects a new direction.

Based on Arkham data, the whale is moving $10 billion worth of assets and has converted $70 million into long positions in BTC, Ethereum [ETH], and Solana [SOL]. His largest exposure is in ETH, amounting to $634 million – a position that is now nearly break-even at the current ETH price of $3.34K.

The pattern is familiar: during a similar silver and gold correction in October, BTC surged by 7%. This correlation lends weight to Garrett’s analysis, especially given his access to information about policy movements.

Real Data vs. Long-term Trend: What Is Really Happening?

However, the emergence of these two events does not guarantee causality. BTC ETF inflows have indeed increased – $458 million demand during the week of December 28-January 2. During the same period, gold ETF inflows decreased. This is a clear sign of capital reallocation from traditional metals to crypto, as Garrett mentioned.

But the full picture is more complex. Both BTC and gold have experienced broad declines in inflows since November. Just one week is too short to determine whether this is a lasting trend or just a temporary repositioning.

At the time of writing, BTC is trading at $96.20K, with a 0.65% gain in 24 hours. The next move may be influenced by the MSCI index decision regarding BTC treasuries delisting and the Fed rate announcement scheduled for January 15 and 28.

Final Perspective

The crypto market stands at a crossroads – the White House insider sees a possible rally while silver and traditional safe-haven assets consolidate. The positive sentiment is clear, but factors such as regulatory decisions and Fed policies could change the trajectory. Investors should stay alert to upcoming economic events in the coming weeks.