Silver briefly overtook NVIDIA as the world's second-largest asset by market capitalization on Jan. 7, reaching $82.7 per ounce in Asian trading. The precious metal's rally has prompted analysts to draw comparisons with Bitcoin, suggesting the cryptocurrency may be positioned for a similar breakout.
What Happened: Record Rally
Silver extended gains beyond $80 per ounce today, pushing its market capitalization above NVIDIA's $4.55 trillion valuation.
The metal traded at $80.8 at press time, up nearly 12% year to date, outpacing gold's 3.2% gain in 2026.
Wall Street Mav, a market analyst, attributed the surge to dual demand drivers. Investors purchase silver as a safe-haven asset while industrial applications in electronics, solar panels, artificial intelligence hardware and electric vehicles account for roughly half of global consumption.
The Silver Institute reported the global market recorded its fifth consecutive annual deficit in 2025.
Annual demand stands at approximately 1.2 billion ounces while mine production and recycling supply only about 1 billion ounces.
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Why It Matters: Crypto Parallels
Analyst Sunil Reddy stated that $100 silver is now firmly on the table for January.
However, Wall Street Mav noted that persistent supply shortages could drive prices higher until demand destruction occurs, potentially around $135 when most solar manufacturers would lose money.
Cryptocurrency analyst Merlijn The Trader observed that silver completed a multi-year cup-and-handle formation before its surge. The analyst remarked that Bitcoin is quietly building the same structure on weekly charts, suggesting a potential sharp upside breakout once the pattern completes.
Crypto Rover added that gold and silver surged after breaking out of monthly accumulation zones. Bitcoin has yet to confirm a similar breakout but could trigger a powerful rally once it does, according to the analyst.
Julian Figueroa noted that silver's move from a $2 trillion asset to $4 trillion in 74 days challenges the thesis of diminishing returns for Bitcoin at its current $1.9 trillion market cap. Market participants are monitoring for potential capital rotation from precious metals into Bitcoin.
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