Gold and silver top signals appear? Funds may be quietly flowing into Bitcoin and the crypto market

A recent intriguing market development has emerged: after a strong rally, gold and silver are showing signs of profit-taking, while cryptocurrencies, especially Bitcoin (BTC), are beginning to attract new attention. Previously, precious metals were regarded as core safe-haven assets in a global uncertain environment, with silver soaring to a historic high of $83, and Bitcoin remaining below $90,000 for a long time, underperforming significantly.

Some analysts believe that the strength of gold and silver has siphoned risk capital, limiting Bitcoin’s rebound potential. Therefore, once the precious metals enter a correction phase, cryptocurrencies may have a window for relief and rebound.

Known as the “White House Whale,” Garret Bullish recently publicly stated that gold and silver may have already peaked temporarily, and funds are gradually shifting toward cryptocurrencies. He pointed out that even if there is selling pressure after the US stock market opens, the crypto market still maintains upward momentum, and hinted that Bitcoin could experience a short squeeze, pushing prices higher without a clear correction.

Garret’s views are highly regarded due to his past track record. On-chain data shows he successfully shorted Bitcoin before policy announcements and made profits exceeding $160 million. Currently, he controls assets worth about $10 billion, with a floating profit of approximately $70 million on long positions in Bitcoin, Ethereum, and Solana. Among them, Ethereum is his largest holding, exceeding $630 million, indicating confidence in the medium-term trend of mainstream crypto assets.

From a historical perspective, such capital rotation is not the first time it has occurred. During the October last year correction in gold and silver, Bitcoin temporarily rose about 7%. Meanwhile, recent data shows that BTC ETF experienced net inflows of approximately $458 million from late December to early January, while gold ETF inflows slowed significantly, to some extent confirming the view that “some funds are shifting from precious metals to Bitcoin.”

However, it is important to emphasize that short-term correlation does not equate to a long-term trend. One week’s data is insufficient to confirm whether this capital rotation is sustainable. Additionally, since November last year, the overall capital inflow trend for gold ETFs and Bitcoin ETFs has been declining, indicating that global risk appetite remains cautious.

Looking ahead, the next move for Bitcoin may depend on multiple macro factors, including the Federal Reserve’s upcoming interest rate decision, regulatory attitudes toward Bitcoin-related assets, and macro capital’s reassessment of the “digital gold” narrative. For investors, whether gold and silver have truly peaked may serve as an important market indicator for the direction of the crypto market in early 2026.