Yesterday, when I checked the market, I saw that gold had broken a three-week low, and silver plummeted by $6.85 in a single day. The entire safe-haven asset sector was thrown into chaos. This movement was quite significant, and many people started to worry whether cryptocurrencies like Bitcoin and Dogecoin would also follow suit and drop.

Having navigated the crypto market for years, I’ve seen many such scenarios. Beginners often tend to overcomplicate the correlation of safe-haven assets. In fact, the core logic is quite simple: gold, silver, and Bitcoin are all used at times as hedging tools against inflation. When precious metals experience a sharp decline, the market indeed worries that the funds seeking safety might also withdraw from the crypto space.

But I want to be honest about one point: the correlation between precious metals and crypto assets is gradually loosening. This wave of gold decline, rather than being a bad sign, is more like a shakeout, which could even create new opportunities.

Looking at the specific data makes this clear. The February gold futures fell by $52.90 to $4,333.20, and the March silver futures dropped even more sharply, plunging $6.85 to $71.09 in a single day. Such a magnitude of decline usually indicates a rapid adjustment in market sentiment rather than a long-term trend reversal. When precious metals enter this kind of rapid correction phase, it often means that old capital allocation logic is being reconstructed, and new capital flows are forming.

For crypto investors, the key is to distinguish whether this is a short-term technical correction or a long-term capital withdrawal. Based on the current market structure, it’s more the former. The driving forces of the crypto market are no longer solely dependent on the movement of precious metals. Policy expectations, technological breakthroughs, institutional allocations, and other factors are gaining importance, which actually gives us more room for operation.