Silver overthrows Bitcoin: Has the era of digital gold come to an end?

In the context of the digital asset market fluctuating, silver has quietly reached its highest price in nearly half a century.

The reversal between the two types of assets — silver and cryptocurrency — not only reflects a change in capital flows but also raises a larger question: Is the era of “digital gold” giving way to traditional assets?

The growth of silver and signs of capital conversion

The global digital asset market is witnessing a rare turning point. Silver has just reached its highest level in approximately 45 years, marking a historic milestone for this precious metal. The demand for physical silver is also increasing in an unprecedented manner, with large-scale transactions from international vaults.

Not only has silver reached a new peak, but gold is also showing a similar trend. In the context of the recovery of traditional assets, Bitcoin and Ethereum have seen a sharp decline following the recent Black Friday event. The market capitalization of silver has now surpassed Bitcoin, placing it in the top 6 among global assets.

The market capitalization of silver has surpassed that of Bitcoin | Source: 8marketcap. The price trajectories of these two seemingly unrelated digital assets are currently moving in opposite directions. This divergence is causing investors to wonder: Are we witnessing the beginning of a “bear market” for cryptocurrencies compared to silver?

“Gold and silver continue to rise in price while Bitcoin and Ether are experiencing a sharp decline. Cryptocurrency buyers will soon learn a valuable yet costly lesson. Fortunately, most cryptocurrency holders are young and have time to recover what they are about to lose,” renowned economist Peter Schiff shared.

The technical data also paints a worrying picture for Bitcoin. Northstar analysts have pointed out that cryptocurrencies peaked against silver four years ago. Since the high in 2021, the Bitcoin/silver ratio has continued to decline — and currently, it is plummeting once again.

“Objectively, the entire cryptocurrency market seems to be entering a bear market compared to silver,” Northstar noted.

The correlation between the silver market and cryptocurrency | Source: NorthstarMany investors have shared painful loss stories, like a trader who lost 80% of their portfolio value in just a few hours during the recent Crypto Black Friday event. Ironically, this trader was once a “silver warrior” before selling at $39 to pursue high-risk cryptocurrency assets.

When real assets increase in value and challenge trust in digital assets

This trend reflects the cyclical rotation between physical assets and digital assets. In the context of growing concerns about economic recession and interest rates remaining high, investors are returning to traditional safe havens. Commodity strategist Mike McGlone previously predicted that the next downturn — which could occur in the fourth quarter of 2025 — could trigger a “mean recovery” for the cryptocurrency market, which has grown too quickly relative to its intrinsic value.

The increase in silver is not only due to physical scarcity but also due to a shift in the mindset of investors — concerns surrounding the US financial system and rising public debt are driving investors to seek out “real” assets.

However, veteran investor Max Keiser still asserts that Bitcoin remains a superior scarce asset, capable of outperforming all other assets in the long run. Although Bitcoin has recently experienced volatility, investors may return to Bitcoin as gold and silver become increasingly harder to access in the future.

“When Gold and Silver disappear from the market, unable to be bought at any price, disappointed buyers will turn to Bitcoin.”

Mr. Giáo