2025-12-26 08:25:22

Recently, there have been many opinions suggesting that once precious metals like gold and silver crash from their historical highs, the funds trapped in them will flow heavily into the cryptocurrency market. The logic sounds quite reasonable.

But on second thought—there's a major premise that no one mentions. What if a systemic financial risk outbreak causes precious metals to plummet? In such a market environment, funds are unlikely to flow obediently into risk assets. Instead, it's very likely to be a "everyone runs together" scenario, and cryptocurrencies, as high-risk assets, will probably be under pressure along with them.

During times of panic, the flow of funds is never about rational asset allocation, but rather collective risk aversion. The perceived risk release often turns into risk transmission.

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gas_fee_trauma

· 5h ago

That's right, this set of logic is full of self-deception. When a true black swan arrives, the crypto sector will be hit the hardest. Don't bother with stories about safe-haven assets. To be honest, a sharp decline in precious metals usually indicates systemic risk, and then all risk assets will go down together, including the crypto market. These financial bloggers always love to talk about "capital rotation," but in actual panic, it doesn't exist at all—only collective liquidation.

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AirdropFatigue

· 5h ago

Basically, it's just self-soothing logic. When a real crisis hits, who still cares about asset allocation? The idea that "precious metals crash → crypto soars" sounds nice, but we need to face reality... In the face of systemic risk, all risk assets are likely to go down together—that's the norm. In a panic market, the flow of funds? That's called fleeing for life, not allocation.

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VitaliksTwin

· 5h ago

It's hilarious. The logical loophole is obvious at a glance. When precious metals plummet, who has spare money to throw into coins? When systemic risk hits, everyone runs together; there's no such thing as a safe haven. When that time comes, the crypto circle will have to die together. Stories of this kind of "fund rotation" become truths the more people talk about them.

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MoonBoi42

· 5h ago

Damn, this is the real truth. Every time someone fantasizes that a collapse of precious metals could save the crypto world, but in reality, a total collapse is the true script.

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Degen4Breakfast

· 5h ago

Really, every time someone imagines that a plunge in precious metals will save the crypto market, but during a systemic collapse, no one can run away. --- So the key still depends on the cause of the collapse. A drop in gold during a financial tsunami is completely different. --- Haha, this is human nature. The more panicked, the easier it is for everyone to stampede. There's really no rational allocation involved. --- Risk aversion is well said. When panic truly sets in, everyone dumps their holdings together. --- In simple terms, it's betting on a mild market correction, but if systemic risk hits, it's all over. --- That logical flaw is indeed big. Always thinking risk assets can absorb risk... --- The moment of collective run is also unbearable for the crypto market. That's the reality. --- A plunge in precious metals ≠ funds to rescue the crypto market; it might even be a warning sign. Be cautious.

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