This year's market trend is so outrageous that it's hard to believe. On one side, silver soared nearly 140% and gold hit new highs with a 70% increase; on the other side, Bitcoin fell 6% and Ethereum declined 12%. Such divergence is unprecedented in the past few years.

At the beginning of the year, the narrative that Bitcoin is "digital gold" was still prevalent, but now reality has thoroughly slapped that idea. When market risk appetite declines, investors sell off crypto assets and buy physical metals. The safe-haven aura of gold and silver shines brightly amid uncertainty, while cryptocurrencies are pushed to the sidelines.

Where funds flow, sentiment follows. The logic behind this market movement is quite clear — in uncertain times, investors desperately seek certainty. Precious metals have become the first choice, while the crypto market has fallen into the role of a risk asset.

**What is the real driver behind the surge in gold?**

On the surface, it looks like speculation, but there is a deeper logic behind it. The fundamental driver is the continuous weakening of the US dollar credit system. Central banks around the world are increasing their gold holdings, sending a clear signal — distrust in the existing international monetary system is spreading.

Additionally, the Federal Reserve has cut interest rates three times this year, significantly lowering the opportunity cost of holding gold. The rate-cutting cycle should have suppressed gold prices, but instead, it became a booster for gold's surge. This contrast itself indicates the market's anxiety about the future.

Another reason why cryptocurrencies can't compete with gold is also very telling — when real risk arrives, institutional investors still trust the centuries-old precious metals more than blockchain assets with just over a decade of history.