Gold and Silver Collapse by $1.7 Trillion, an Early Signal that Bitcoin is Ready to Rise?

Jakarta, Pintu News – Global markets were shocked by the collapse of gold and silver prices that occurred in just about 90 minutes. The market value of the two safe haven assets shrank to around $1.7 trillion, a figure that surpasses the combined capitalization of several major cryptocurrencies.

These extreme movements instantly sparked speculation about capital shifting to riskier assets. Amidst the turmoil, crypto market participants’ attention was drawn to Bitcoin (BTC) as a candidate for the next recipient of fund rotation.

Gold and Silver Correct After Record Prints

This sharp correction came shortly after gold and silver set all-time record high prices. Gold prices fell from around USD 5,090 or IDR 85.07 million to USD 4,888 or around IDR 81.69 million per ounce, a correction of around 1.6 percent. Meanwhile, silver experienced much greater pressure with a decline from USD 116 or Rp1.94 million to around USD 103 or Rp1.72 million per ounce. Silver’s correction reached 10 to 12 percent after a strong rally in recent months.

Market observers think that this decline was not caused by mass panic. Large-scale profit-taking is said to be the main trigger, given that many investors have enjoyed significant gains before. In addition, the easing of global geopolitical tensions reduced the appeal of gold and silver as hedge assets. This led some capital to start looking for more aggressive yield opportunities.

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Long Position Pressure and Sentiment Change

Another factor that accelerates the price fall is the heavy long positions in the precious metals market. When too many market participants are betting on rising prices, even a slight change in sentiment can trigger a chain sell-off. This creates a quick and sharp correction in a short period of time. A similar phenomenon often occurs across various asset classes, including crypto and cryptocurrencies.

In this context, gold and silver weakness is often seen as an early signal of asset rotation. When fear subsides, investors tend to shift funds to riskier instruments with higher potential returns. Market history shows that such phases often favor digital assets. Therefore, the spotlight is now turning to Bitcoin and other major altcoins.

Bitcoin Remains Stable Amid Turmoil

In contrast to gold and silver, Bitcoin actually shows price resilience. In the same 24-hour period, Bitcoin recorded an increase of around 1.7 percent and traded at around USD 88,663 or around IDR 1.48 billion. This stability is considered a positive signal by some traders. The absence of major selling pressure indicates the potential for quiet accumulation by large market participants.

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Some analysts see this pattern as the beginning of a change in the market narrative. As safe havens weaken and Bitcoin holds its ground, investors’ attention is starting to turn to crypto assets. Major altcoins such as Ethereum (ETH), Ripple (XRP), and Solana are also on the speculation radar. While there hasn’t been a significant price spike, a quiet phase often precedes big moves.

Historical Patterns and Chances of a Bitcoin Rally

History shows an interesting pattern between gold and Bitcoin. In 2017, gold rallied about 30 percent before Bitcoin surged nearly 1,900 percent in the following period. A similar rotation pattern was seen again in 2021, when the flow of funds moved from gold to cryptocurrencies. With gold still relatively strong but starting to correct, some traders think this scenario could potentially repeat itself.

Some market participants even speculate that Bitcoin could post a 400 percent increase if history repeats itself. However, these projections still depend on macro conditions and global sentiment. Interest rates, liquidity and regulation are still important variables. For investors, understanding historical context is key in reading opportunities and risks.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Coinpedia. Gold, Silver Lose $1.7 Trillion in Hours, Is Bitcoin About to Rally?. Accessed January 28, 2026
• Featured Image: Generated by AI