Recently, the market investor circle has been buzzing with activity. Some seasoned institutional investors point out that the recent sharp rises in silver, palladium, and platinum may seem prosperous but actually conceal risks—these are more likely short-term fluctuations caused by short covering rather than rational upward movements driven by fundamentals. The problem is that once this rally loses support, it could trigger a chain reaction. When precious metal prices plunge, gold is also likely to be dragged down, eventually leading to a withdrawal of funds from the entire precious metals sector.

So the key question is: where will the massive capital exiting the traditional markets ultimately flow? Industry observers generally point to the cryptocurrency market, especially Bitcoin and Ethereum.

This is not a random guess. If trillions of dollars of capital truly make such a shift, what will the crypto market face? On one hand, abundant liquidity will push asset prices higher; on the other hand, the influx of such large amounts of capital could bring unprecedented volatility. Market structure, risk premiums, liquidity depth—all will be put to the test again.

Against this backdrop, investors’ core challenge becomes particularly prominent: how to protect their assets in a market with extreme fluctuations? Relying solely on holding highly volatile crypto assets is not enough. Combining stable assets into a diversified portfolio is a rational choice for hedging risks and balancing returns. As a potential market upheaval approaches, the strategic value of preemptively allocating to stable assets is being reevaluated.