Crypto Capital Rotates To Metals: Silver Skyrockets to $100, Gold Soars to $5K While Bitcoin ETFs Bleed Billions

Digital asset investors are making a historic pivot—pouring capital into precious metals as Bitcoin exchange-traded funds hemorrhage value. The rotation signals a dramatic shift in risk appetite.

The Great Rotation

Silver's surge past $100 an ounce and gold's breach of the $5,000 barrier aren't just market moves—they're a statement. Capital is fleeing crypto volatility for perceived safe havens, rewriting the traditional playbook for institutional allocators.

ETF Exodus

Bitcoin ETF outflows tell the story. Funds designed to bridge traditional finance and digital assets are bleeding assets as investors chase momentum in the metals market. The narrative of crypto as 'digital gold' faces its sternest test yet.

Market Mechanics Exposed

The rotation exposes crypto's lingering sensitivity to macro pressures. When traditional hedges flash bullish signals, even die-hard digital advocates can't ignore the siren call of triple-digit percentage gains in established stores of value.

Finance's Fickle Nature

Wall Street's latest love affair with crypto appears to be cooling—proving once again that institutional capital follows returns, not revolutions. The same suits who championed blockchain disruption are now chasing commodities their grandfathers would recognize.

Capital Rotates To Metals As Crypto Turns Into The Risk Asset Again

A CryptoQuant report argues that current market flows reflect a desperate search for solid ground, and the numbers highlight how sharply investor behavior is shifting. Silver has broken its historical barrier, surging to $100 per troy ounce, while gold continues its vertical climb toward the $5,000 milestone, trading NEAR $4.9K after posting a weekly gain of almost 8%. This type of synchronized breakout across precious metals signals a powerful flight-to-safety impulse, especially at a time when investors are questioning the stability of traditional macro anchors.

CryptoQuant notes that the US dollar is also under pressure, experiencing its steepest weekly devaluation since May of last year, when markets were still adjusting to the shock from Donald Trump’s extreme tariff hike in April. The timing is not random. When confidence in the dollar weakens, part of that capital often rotates into gold first, reinforcing metals as the default refuge.

The crypto side of the equation tells a different story. The flight is selective: US bitcoin ETFs recorded $1.33 billion in weekly outflows, the largest since February 2025. Yet Bitcoin has not collapsed, supported by miner resilience as they remain in a zone of operational neutrality. The conclusion is clear: in the short term, capital is prioritizing the classic refuge over innovative risk.

CryptoQuant frames this as a paradigm inversion—money is no longer defaulting to Treasuries, but to metals, even as volatility risk in gold and silver rises.

Bitcoin Weekly Structure Tests Key Support

Bitcoin is trading around $87,900 on the weekly chart, attempting to stabilize after a sharp corrective leg that followed the late-2025 peak. The market has shifted from expansion to consolidation, with BTC struggling to regain momentum after breaking down from the $100K region. While price has not collapsed into a full capitulation phase, the weekly structure shows that sellers remain active on rallies and buyers are increasingly forced to defend key levels.

From a trend standpoint, BTC is now compressed between major moving averages. The 50-period moving average (blue) is still above price near $101,000, acting as strong overhead resistance and marking the level the market must reclaim to restore bullish momentum. Meanwhile, the 100-period moving average (green) is rising toward price near $87,500, becoming a critical dynamic support zone. As long as BTC holds above this rising trend reference, the pullback can still be interpreted as a corrective phase within a broader uptrend rather than a full structural breakdown.

The 200-period moving average (red) continues to slope upward far below price near $58,000, highlighting that long-term trend conditions remain positive despite the current volatility. Volume has been elevated during the recent selloff compared to prior weeks, reflecting forced deleveraging and defensive positioning.

For bulls, the key objective is reclaiming $90K and building acceptance above that level. If support fails near the green average, downside risk opens toward the low-$80K range before the market finds stronger demand.

Featured image from ChatGPT, chart from TradingView.com