Yin and Yang Paradox in the Market: $1.33 Billion USD Exits ETF as Investors Turn to Precious Metals

The cryptocurrency market is going through a complex phase, where the “paradoxical yin and yang” is perfectly manifested in every aspect. While global liquidity reaches record levels, capital flows are leaving digital assets at an unprecedented rate. This phenomenon is not due to a lack of liquidity, but a fundamental shift in how investors perceive risk.

The crypto market recently experienced a severe 35% decline, wiping out $1 trillion in value in less than a month. This loss of confidence from institutions has triggered a massive capital shift, with digital real estate assets rushing into traditional assets considered safer.

Large-Scale Capital Rotation: Bitcoin, Ethereum Under the Most Pressure

Bitcoin is the most affected in this wave. Bitcoin-tracking ETFs have recorded a net outflow of $1.33 billion, the worst since the major sell-off in November last year. With a 3.53% drop in the past 24 hours, the market currently values Bitcoin at $1.66089 trillion, reflecting widespread market sentiment weakness.

Next in line are Ethereum. Outflows from Ethereum ETFs reached $611 million, comparable to the sell-off wave in mid-December. The price decreased by 3.73% today, bringing its market cap down to $330.01 billion.

Ripple (XRP) experienced a surprising reversal after a week of positive capital absorption. This week, XRP ETFs reported their first weekly outflow since launch, with $40.6 million withdrawn. This pullback caused XRP’s price to drop 3.06%, with a current market cap of $107.28 billion.

Solana is the only exception in the list, but this stability is extremely fragile. Although not experiencing large withdrawals like other coins, SOL recorded a record low inflow of $9.57 million. The price decreased by 2.29% compared to yesterday, with a market cap of $66.03 billion.

Gold and Silver as Alternatives: When Precious Metals Become Focal Points

Amid the crypto plunge, precious metals are entering a solid growth phase. Gold is currently valued at $34.6 trillion, while silver has surged to $5.8 trillion. Escalating geopolitical tensions and a weakening US dollar have created an ideal environment for these traditional assets.

A particularly striking figure is that silver has increased in value to match the entire market capitalization of Bitcoin since October. This comparison highlights the scale of the shift from digital assets to precious metals.

Global Liquidity Paradox: Capital Flows Increase While Crypto Declines

The “paradoxical yin and yang” phenomenon lies here: global liquidity has just hit a record $162 trillion, a figure typically signaling a positive environment for risk assets like cryptocurrencies. However, what is actually happening is completely opposite.

Since November 15, a clear divergence has appeared: liquidity continues to rise, but capital completely ignores risk assets in favor of stability. This is a sign of a fundamental change in investor psychology—they no longer trust “digital gold” in today’s world.

De-Risk Strategy: Shifting from Digital Assets to Precious Metals

Investors implementing a systematic de-risk strategy are pulling out of highly volatile assets to move into more stable instruments. This shift is not just a temporary market condition but reflects deep concerns about the macroeconomic environment.

The recovery of cryptocurrencies heavily depends on the fundamental monetary conditions—specifically, whether the new Fed Chair will adopt policies friendly to risk assets. Until clear signals come from policymakers, cash and precious metals will continue to hold the top position in asset allocation.

The current situation is a perfect example of the “paradoxical yin and yang”—where abundant liquidity exists, but the direction is completely opposite to traditional expectations.

Content from Trading Insight is for reference and educational purposes only, not investment advice. Please conduct thorough research before making any trading decisions.