Retail investor sentiment surges towards silver; does the popularity of safe-haven assets indicate a potential top?

January 28 News, as macro uncertainties intensify, capital and attention are shifting from the cryptocurrency market to traditional safe-haven assets. While gold and silver prices continue to hit record highs, the rapid rise in retail investor sentiment has sparked new discussions: Is the strength of silver nearing a cyclical peak?

On-chain and sentiment data provide important clues. Analysis firm Santiment pointed out that the total market cap of the top 12 stablecoins has recently decreased by approximately $2.24 billion, while Bitcoin prices have also weakened. In contrast, gold and silver continue to rise. This combination typically indicates that funds are not waiting on the exchange for opportunities but are instead withdrawing from high-volatility assets and moving into assets considered “safer.”

This shift is reflected not only in capital flows but also in retail investor attention. Santiment’s social media monitoring shows that investor focus in January has shifted frequently: from cryptocurrencies at the beginning of the month, to gold in mid-month, and recently to a surge in interest in silver. Each rapid spike in attention is almost always accompanied by a short-term price surge in the related assets.

It is worth noting that retail investors’ “fear of missing out” (FOMO) is often seen as a contrarian indicator. Historical experience shows that when ordinary investors are highly excited on social platforms and intensely chasing a particular asset, the market is often in its later stages. Recently, silver prices surged above $117 per ounce, only to see a significant pullback within hours, exemplifying this rapid emotional release.

Santiment pointed out that, unlike previous sector rotations within the crypto market, retail investors now tend to switch horizontally between cryptocurrencies, precious metals, and even stocks, chasing the assets with the biggest short-term gains. While this behavior can amplify cyclical trends, it also increases the risk of catching a top.

Meanwhile, Benjamin Cowen, founder of Into The Cryptoverse, believes that silver may remain highly volatile in the coming months, but the instability after sharp rises is increasing. As of the latest data, silver prices remain around $113 per ounce.

Supported by safe-haven demand, the medium- to long-term logic for silver remains attractive, but from a trading perspective, overheated retail sentiment often signals increasing risk of a correction. For silver, the next phase of its trend will likely depend on whether genuine demand can continue to support high prices after sentiment cools down.