Silver outperforms? The truth behind the polarized crypto market at the end of the year

Silver’s recent performance has truly stolen the spotlight. According to the latest market data, the volatility of the precious metal silver has surged above 50%, with a staggering year-to-date increase of over 151%, completely surpassing many people’s “ace asset” expectations. This rally is mainly driven by the sustained rise in green technology demand and the upcoming export control measures implemented by China.

In contrast, bitcoin’s situation appears somewhat awkward.

Bitcoin Volatility Is Actually Contracting

Although bitcoin remains a market focus, its 30-day annualized volatility has stabilized around 45%, even below the 48% average over the past year—what does this indicate? Market expectations for bitcoin are becoming more stable, and volatility is actually narrowing.

Even more striking is its price performance. Bitcoin is currently quoted at approximately $91,000 (based on the latest data update), down nearly 30% from the October all-time high of $126,000. This correction isn’t driven by a sudden shift in market sentiment; analysts generally believe that weakening spot ETF demand and structural market factors are the real drivers.

The Logic Behind Asset Polarization

Interestingly, while silver soars due to actual demand (green energy, industrial applications), bitcoin faces pressure from cooling institutional funds (spot ETFs). This contrast precisely reflects the deep market changes happening now—not all assets fluctuate with sentiment, but each follows its own path based on fundamentals and capital flows.

Silver’s 151% annual increase combined with over 50% volatility clearly indicates how urgent real economic demand for it is. Meanwhile, bitcoin reveals characteristics driven by short-term capital; once incremental funds decrease, price pressure follows. This market divergence warrants ongoing observation.