Bitcoin Stalls as Silver Steals the Spotlight in Risk-Off Rotation

$35 billion. That's how much Bitcoin's daily trading volume shrunk in just 24 hours. Meanwhile, silver has surged 57% since January 1st, creating one of the most dramatic asset rotations we've seen in months. The crypto market's hibernation is giving precious metals their moment to shine.

The Great Stall: Crypto Markets Hit Pause

Bitcoin is stuck in a narrow trading range around $87,945, with daily volume plummeting 25% to $35 billion. Ethereum fared no better, seeing its volume contract 21% to $24.6 billion. Volatility indices for both assets have dropped to multi-month lows, painting a picture of market apathy that's becoming impossible to ignore.

This isn't just a temporary lull. The crypto market has been grinding sideways for days, with traders seemingly paralyzed by uncertainty. Open interest remains relatively stable, but the lack of conviction is palpable. Even leveraged positions are getting squeezed—$270 million in futures bets were liquidated over 24 hours, mostly shorts caught off guard by Bitcoin's modest bounce from $86,000 to nearly $88,000.

Silver's Surprising Surge

While crypto traders twiddle their thumbs, precious metals are having their moment. Gold just hit $5,085, marking a series of record highs, but silver is the real star. The white metal's 57% year-to-date gain has caught even seasoned traders by surprise.

On HyperLiquid, silver futures are now approaching $1 billion in daily volume—more than any asset except Bitcoin and Ethereum. That's a staggering figure that underscores how quickly sentiment can shift when risk-off sentiment takes hold. Interestingly, funding rates show a negative skew, suggesting traders are shorting into strength rather than chasing the rally—a contrarian signal worth watching.

The Trump Factor

This rotation didn't happen in a vacuum. President Donald Trump's announcement of 25% tariffs on South Korea Monday, following last week's political tensions with the European Union over Greenland, has amplified risk-off sentiment. When geopolitical uncertainty rises, traditional haven assets often benefit at crypto's expense.

The timing couldn't be more telling. Just as crypto was supposed to be proving its worth as "digital gold," actual precious metals are reminding investors why they've been stores of value for millennia.

Pockets of Crypto Strength

Not everything in crypto-land is dormant. Privacy coins are showing relative strength, with Zcash up 4% and Monero gaining 3%—both outperforming Bitcoin and major altcoins. This suggests that in uncertain times, some investors still value crypto's unique properties, particularly anonymity and censorship resistance.

HyperLiquid's native HYPE token surged 22% as trading volume doubled to $510 million, directly benefiting from the silver futures boom on its platform. Meanwhile, Pump.fun's native token jumped 14.5% as January trading volume on the platform already exceeded $10 billion—its highest since June with four days still left in the month.

Market Structure Signals

The derivatives market tells a more nuanced story. On Deribit, Bitcoin and Ethereum puts continue trading at premiums to calls, indicating lingering downside concerns. Some observers note that downside protection has become a "crowded trade," potentially making calls relatively cheap for bullish investors.

Bearish strategies like put spreads and volatility plays account for nearly 50% of all Bitcoin block trades over the past day. For Ethereum, traders are favoring iron condors—a strategy designed to profit from range-bound markets. The positioning suggests many expect continued sideways action.