Recently, gold and silver have performed strongly, with a large influx of funds into safe-haven assets. What does this phenomenon reflect?

Ultimately, it indicates a shift in risk appetite. In an environment of high interest rates combined with geopolitical uncertainties, investors are seeking more certain returns, making precious metals highly sought after. At the same time, the crypto market is showing the opposite trend—high volatility, liquidity drought, lack of market narrative, and various leverage positions gradually being liquidated, with mainstream cryptocurrencies like BTC and ETH continuously hitting new lows.

On the surface, this looks like a downturn in the crypto market, but if we look at the historical patterns of capital flow, the situation might not be that simple.

Whenever safe-haven assets are chased to the extreme, it often signals that risk assets are preparing for a bottom. The recent rally in gold and silver, to some extent, indicates that cryptocurrencies have already experienced a significant oversell. When market sentiment hits rock bottom and there is little interest, it is usually the most cost-effective moment for the next opportunity.

How to choose depends on your understanding of market cycles.