In the last two trading days, the precious metals market has completely collapsed. On Monday, the gold spot price surged to $4412 per ounce, once again setting a historical high. The performance of silver was even more outrageous, directly pumping to $69.44 per ounce, also breaking a new record.

But this also raises an interesting question: Gold and silver are going crazy, what about Bitcoin and the entire crypto market? The reality is that crypto assets have temporarily failed to keep up with this wave of market.

**Why are precious metals so strong?**

Ultimately, three forces are at play. First is the renewed expectation of interest rate cuts. A downward trend in rates means that zero-yield assets (like gold and silver) become more attractive. Second, the risk aversion sentiment has not dissipated. The uncertainty in the geopolitical situation, along with concerns about economic growth slowing down, leads both institutions and retail investors to move their money into those proven "safe-haven assets." The third factor is that central banks around the world are continuing to buy gold. This year, multiple central banks globally have been increasing their gold reserves, providing the market with a solid bottom support.

Data speaks for itself. Gold has increased by about 67% from the beginning of the year to now, while silver is even more exaggerated, with an increase of over 138% this year. Even platinum and palladium have risen across the board. Essentially, it is a massive influx of funds into precious metals, this traditional safe haven.

**What is Bitcoin doing?**

In contrast, the crypto market appears a bit calm. BTC is now fluctuating between $86,000 and $88,000, having retraced about 30% from the highs at the beginning of October. The entire risk asset sector is under pressure, and the funding attitude is cautious.

This is actually not surprising. A glance at historical records reveals that whenever economic pressure begins to surface, gold is usually the first to respond, while Bitcoin often lags behind. This is a recurring rhythmic pattern.

The current situation basically follows this old routine. When traditional financial markets are worried about economic prospects, the first refuge they seek is still time-tested safe-haven assets like gold. Although Bitcoin has long been regarded as "digital gold," in short-term risk events, institutional investors' first reaction is still to choose traditional precious metals—this reflects a cautious attitude towards emerging asset classes.

However, from a longer time perspective, this kind of dislocation is often temporary. Once economic expectations begin to clarify, or the liquidity environment changes, the crypto market often experiences a rebound. The current "calm" may just be the quiet before the storm.