The rhythm of the cryptocurrency market has clearly changed after winter set in. Bitcoin hit a new high in October and then declined steadily, losing nearly 30% by the end of the year. Leveraged liquidations and capital outflows have caused many to consider shifting to other assets.

Interestingly, while everyone is wrestling in the crypto world, silver has been quietly making big gains. There is actually solid logic behind this—over the past five years, silver has been in a supply deficit, with an estimated gap of 100 to 250 million ounces in 2025. Inventories have fallen to the lowest levels in decades, and physical shortages are beginning to trigger squeezes.

On the industrial side, the demand for silver from emerging industries like photovoltaics and new energy vehicles is rigid, accounting for about 60% of total demand. Therefore, the bottom of silver prices is actually supported by genuine market demand.

But a word of caution—this wave of silver price increases has been quite substantial, and in the short term, there’s a bit of over-optimism. The institutions’ judgment is that whether current prices can hold remains uncertain, and a correction is likely next year.

The biggest concern is people coming out of the crypto space, only to turn around and chase silver with the same leverage mindset and speculative attitude. If that happens, they might have to go through the same lessons all over again. Asset rotation is inevitable, but the essence of risk management must not change.