Last night's precious metals market was quite lively—silver staged a dramatic reversal, breaking through $79 per ounce and stealing the spotlight from gold. Such market movements can indeed be confusing at first glance, but the underlying story is far more complex than the surface excitement suggests.

You might ask, what are most traders seeing? Mostly just price increases and a hot trading session. But what’s truly worth paying attention to is the macro capital flow signals revealed behind this rally—especially the implications for crypto market positioning.

Silver, as an asset, plays a dual role. On one hand, it’s a risk-asset hedge; when global liquidity tightens or geopolitical and economic uncertainties rise, funds tend to flock into it. On the other hand, it’s a critical raw material for industrial production, especially in hot sectors like photovoltaic power, new energy vehicles, and electronics manufacturing. This recent surge is a perfect example of both forces acting simultaneously—expectations of global central bank rate cuts are rising, prompting funds to seek safety; meanwhile, the expansion of green technology industries is boosting industrial demand. When these two factors align, silver can deliver such impressive market performance.

Here’s the key point to observe. Historical data reveals an interesting pattern: once traditional safe-haven assets (gold, silver) begin an upward cycle, they often trigger a rotation of macro funds into core crypto assets within a 3 to 5-month window. This is no coincidence but a rational allocation process of funds across different safe-haven assets.

Looking back at history, it becomes clear. After gold broke out in 2017, Bitcoin surged by 300% within 90 days; after gold hit a new all-time high in 2020, Bitcoin soared to $69,000 within 120 days. This rhythm has held true across three complete cycles over the past decade. What does this tell us? It indicates that institutional funds and smart money follow a consistent macro allocation logic—when traditional safe assets strengthen, they simultaneously deploy capital into digital assets.

From this perspective, the recent rise in silver is essentially a prelude to subsequent capital rotation. In the crypto market, those assets that the market labels as "digital silver"