Retail FOMO into Silver as $2.24B Leaves Stablecoins; Analysts Warn of Top

Analytics firm Santiment says capital is rotating from crypto into gold and silver as the combined market cap of the top 12 stablecoins fell by $2.24 billion, a move that coincided with Bitcoin dropping while gold and silver hit record highs. Santiment interpreted the stablecoin contraction as a risk-off shift, writing: "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 firm added the decline suggests investors are redeeming stablecoins for fiat rather than preparing to buy dips. The firm also noted retail attention on social media has rotated between crypto and traditional assets through January, moving from muted crypto discussion to gold, then back to Bitcoin, and in the fourth week shifting toward silver as it broke record highs.

Santiment said retail traders are now more willing to jump sectors entirely based on recent pumps. Santiment and other analysts flagged that such retail FOMO can be a contrarian signal for a market top. Santiment pointed to an episode when silver surged above $117.70 and then fell back below $102.70 just two hours later after retail hype peaked.

Benjamin Cowen of Into The Cryptoverse has also forecast a possible silver blow-off top between February and May. Silver was trading at $113.7 per ounce, up 1.3% over the past day at the time of reporting.

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