Is a pullback in precious metals imminent? Funds may rotate towards Bitcoin and Ethereum.

2025-12-24 02:58:35

On December 24th, industry insiders shared an interesting market observation: the recent rise in silver, palladium, and platinum is mainly supported by short positions squeezing, making this market quite fragile.

What truly deserves attention is the subsequent actions. Once these precious metals start to pull back, gold will most likely adjust accordingly. At that time, risk assets will have an opportunity — a large amount of capital is likely to withdraw from the entire precious metals sector and flow into crypto assets such as Bitcoin and Ethereum.

The story of capital rotation is repeatedly played out in the market; will this time be different? It is worth observing.

BTC0.32%

ETH-0.18%

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ShadowStaker

· 12-24 03:27

nah, the squeeze narrative feels overcooked tbh. seen this "capital rotation" thesis play out what, three times this cycle? preciousmetals dump doesn't automatically mean btc moons. validator economics matter more than the macro theater honestly

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FundingMartyr

· 12-24 03:26

The thing about short squeezes is not wrong, but if precious metals really pull back, will all the funds run to the crypto world? Why do I feel like I hear this trap every year? Wait, at this price for Bitcoin, can it really attract that much traditional capital?

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SolidityJester

· 12-24 03:24

The market supported by short squeezes will break with just a poke. I've heard this logic of betting on precious metal pullbacks causing capital rotation too many times, and in the end, it still depends on who runs faster. Can this time really be different? Honestly, I don't really believe so. If precious metals really fall, retail investors rushing into the crypto world will be the last train.

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SmartContractPhobia

· 12-24 02:58

I've heard the rhetoric of short positions being squeezed too many times. The ones who truly benefit from the rotation are still those who react quickly. I bet that precious metals will fall by five points first before anyone seriously pours money into the crypto world.

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