"Is the shine of "digital gold" fading? Silver hits a 45-year high, top economists warn that Crypto Assets may face a "brutal awakening".

As the global digital asset market experiences instability, the price of traditional safe-haven asset silver has quietly risen to its highest level in nearly 45 years, reaching a historic peak. The reversal of this asset class—silver and gold soaring while Bitcoin and Ethereum have plummeted significantly following the recent "crypto Black Friday" event—has sparked major concerns that capital is shifting from "digital gold" to tangible assets. Renowned economist Peter Schiff warns that cryptocurrency buyers will face a "brutal awakening," and analysts have also observed a continued big dump in the Bitcoin/silver ratio, indicating that the entire crypto market may be entering a "Bear Market" relative to silver.

Silver Hits Record High: Clear Signals of Capital Rotation

The global asset market is experiencing a rare turning point, with the strong rise of traditional precious metals contrasting sharply with the weakness of digital assets.

· Surge in silver demand and historic prices

Silver prices have reached their highest level in nearly 45 years. Meanwhile, the demand for physical silver has surged at an unprecedented pace, with large-scale purchases and delivery activities in international warehouses corroborating this trend. Gold prices have also shown a similar upward momentum.

· The "Black Friday" of crypto assets compared to market capitalization

While traditional assets are experiencing a strong rebound, Bitcoin and Ethereum have seen a big dump in prices following the recent "crypto Black Friday" event. The market capitalization of silver has now surpassed Bitcoin, placing it among the top tier of global assets.

· Top economists' bearish warning

This divergence prompts investors to question: Are we witnessing the beginning of a "Bear Market" for crypto assets relative to silver? Renowned economist Peter Schiff publicly stated: "As gold and silver continue to skyrocket, Bitcoin and Ethereum continue to crash. Crypto asset buyers will face a brutal awakening and soon learn a valuable but costly lesson."

· Warning of technical indicators

Analyst Northstar observed that the technical data further paints a worrying picture: the ratio of cryptocurrency to silver peaked four years ago and has been continuously falling since the 2021 high, and is now experiencing another big dump. Northstar clearly stated: "Objectively speaking, the entire crypto market now appears to be entering a Bear Market relative to silver."

Asset Rotation and Investor Psychology: From Digital to Tangible Hedging

The current trend reflects the cyclical rotation between tangible assets and digital assets, as well as changes in investor sentiment.

· Driven by macroeconomic fears

In the context of growing concerns about a global economic recession and persistently high interest rates, investors are returning to traditional safe havens. Commodity strategist Mike McGlone had previously predicted that the next round of downturn—possibly arriving in the fourth quarter of 2025—could trigger a "mean reversion" in the crypto market, due to its growth rate being too fast and detached from intrinsic value.

· Hedge financial system risks

The rise of silver is not only attributed to its own physical scarcity but also stems from a shift in investor psychology—concerns about the U.S. financial system and fears of soaring debt are prompting investors to flock towards "real" assets.

· The long-term debate on Bitcoin

Nevertheless, veteran investor Max Keiser still firmly believes that Bitcoin, as a higher quality scarce asset, has the capability to surpass everything in the long run. He believes that as gold and silver become increasingly difficult to obtain, ultimately frustrated buyers will "turn to Bitcoin."

Conclusion

The achievement of silver hitting a 45-year high has sounded the alarm for the crypto market, highlighting the risk of capital undergoing cyclical rotation from high-risk digital assets to historically established tangible safe-haven assets. The warnings from economists like Peter Schiff, while sharp, also reflect investors' reevaluation of "real" value in the context of the macroeconomic backdrop. Investors need to carefully weigh the high return potential of digital assets against the safe-haven stability characteristics of traditional assets, especially in the context of the ongoing decline in the Bitcoin/silver ratio. The next phase of the market trend will be a further interpretation of the long-term value battle between "digital gold" and "physical silver."