Silver overtakes bitcoin on volatility as year-end trading thins

As the year closes, silver and Bitcoin are showing divergent market signals, with silver volatility spiking while Bitcoin remains range-bound. Silver's annualized 30-day realized volatility has surged into the mid-50s, driven by a sharp rally, widening physical premiums, and supply stress, resulting in a year-to-date gain of over 151%. This surge is attributed to mismatched demand from sectors like solar panels and EVs against lagging supply, exacerbated by China imposing export licensing on silver starting January 1st. Conversely, Bitcoin's volatility has compressed into the mid-40s, and the asset is down nearly 7% for the year, trading significantly below its October high. Analysts suggest Bitcoin's stagnation is due to fading spot ETF demand and mechanical forces amplified by holiday-thinned liquidity, with prediction markets showing high confidence that BTC will remain range-bound above $86,000 in the near term.

(Source：CoinDesk)