• Capital is rotating from crypto into gold and silver as stablecoin market caps decline.
• Retail attention on social media has shifted toward precious metals amid record price highs.
• Analysts warn retail FOMO into silver may signal a potential market top.

Gold and silver are not only attracting capital away from crypto but also drawing retail attention, as discussions around precious metals rise on social media.

However, analysts suggest that fear of missing out (FOMO) among retail traders often signals that a market top may be near.

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Earlier this week, analytics firm Santiment highlighted that the combined market cap of the top 12 stablecoins decreased by $2.24 billion. This decline coincided with Bitcoin (BTC) dropping, while gold and silver reached all-time highs.

The parallel rise in safe havens and the decline in stablecoin market caps suggest a risk-off shift in investor positioning. This contraction indicates that capital is exiting the crypto ecosystem rather than remaining on the sidelines.

“Investors are choosing safety over risk. When uncertainty rises, money often flows into assets that are seen as stores of value during economic stress, rather than volatile markets like crypto,” the post read.

In typical market pullbacks, traders often rotate from digital assets into stablecoins while waiting for reentry opportunities. Nonetheless, a declining stablecoin market cap suggests that investors are redeeming stablecoins for fiat rather than preparing to buy dips.

In addition to capital, attention is also shifting. In a separate post on X (formerly Twitter), Santiment noted that retail traders’ attention has become increasingly fragmented, with interest shifting between crypto and traditional assets depending on short-term price momentum.

Across crypto social media circles throughout January, trader focus changed from week to week. In the first week of January, crypto markets rose amid muted discussion as participants returned slowly from the holiday period.

In the second week, attention pivoted toward gold after the metal reached new all-time highs, with crypto rising in parallel. By the third week, Bitcoin dominated online conversations as prices pulled back, drawing in retail buyers attempting to buy the dip. Amid this, the crypto market declined sharply.

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In the fourth week of January, social interest rotated again, this time toward silver. The precious metal also broke record highs as traders rushed to gain exposure, while crypto markets remained range-bound.

Santiment added that crypto traders are typically known for rotating between sectors within the digital asset space, such as meme coins, AI tokens, or blue-chip assets. However, current data indicate a broader behavioral shift.

“But now, retail is proving to be open to jumping sectors entirely, with social data showing how gold, silver, and even equities are getting more and more interest based on wherever the latest pumps appear,” the team wrote.

Momentum Chasing Sparks Silver Market-Top Concerns

Meanwhile, Santiment noted that widespread retail excitement is often a contrarian signal. Retail FOMO usually appears late in a rally, when prices are already high. When everyday investors rush in emotionally, it often signals the market is likely near a top.

“When crypto retail begins FOMO’ing in, that’s generally where tops appear. Case and point was today, when silver set records by surging above $117.70 and then falling back down below $102.70 just 2 hours later after retail hype peaked. To trade successfully, try to go against the grain of where the crowd is looking.”

Besides this, Benjamin Cowen, founder of Into The Cryptoverse, has also forecasted that silver could see a blow-off top between February and May.

As of the latest data, silver prices stood at $113.7 per ounce, up 1.3% over the past day. Whether the metal will actually top in the coming period remains to be seen.

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