Silver Temporarily Surpasses NVIDIA: Implications for Bitcoin

Silver prices soared to $82.7 per ounce during early Asian trading hours, approaching its recent all-time high (ATH), and briefly surpassed NVIDIA to become the second-largest asset globally by market capitalization.

Key Takeaways

Silver's price rose to $82.7, temporarily surpassing NVIDIA in market cap.
This rally is linked to both its monetary appeal and industrial demand.
Analysts are drawing comparisons between silver's pattern and Bitcoin's potential breakout.
Supply shortages are fueling rising silver prices, with projections of hitting over $100.
Interest in Bitcoin might surge as capital shifts from silver and other precious metals.

This remarkable development has drawn substantial attention in financial markets. Analysts are increasingly drawing parallels between silver and Bitcoin, with some believing that the cryptocurrency may be on the brink of a similar breakout.

Silver's Rise Stands Out Against Tech Giants

After a slight downturn from its recent peak, silver has now surpassed $80 per ounce, hitting a high of $82.7 today. This latest uptick has pushed silver’s market capitalization beyond NVIDIA’s impressive $4.55 trillion.

As of now, silver is trading at $80.8, reflecting an almost 12% increase year-to-date. This growth outstrips that of gold, which has seen a rise of about 3.2% in 2026 so far. Economist Peter Schiff commented, “This is likely silver’s best start to a year ever.”

Silver Price Performance. Source: TradingView

Silver's upswing is part of a broader trend. In 2025, the metal outperformed gold significantly, climbing approximately 176%, while gold managed a 70.3% increase. Analysts believe that silver's appeal lies in its dual functionality. Investors view it as a safe-haven or monetary asset, similar to gold. Additionally, silver is essential in various industrial applications, including electronics, solar energy, artificial intelligence hardware, and electric vehicles. According to BeInCrypto, industrial demand accounts for nearly half of global silver consumption.

“Silver has become increasingly intriguing, thanks to both investor interest and its industrial demand for applications in electronics, solar energy, AI, EVs, and more,” noted Wall Street Mav.

Analysts highlight a persistent supply-demand imbalance that supports silver's price rally. The Silver Institute reported that the global silver market recorded its fifth consecutive annual deficit in 2025, with demand at approximately 1.2 billion ounces, while mining and recycling only produced about 1 billion ounces.

This structural shortfall has created sustained upward momentum, with many expecting silver prices to potentially reach triple digits by 2026. “$100 silver is now firmly on the table for January,” stated analyst Sunil Reddy.

UBS has now joined the conversation, suggesting that silver could indeed surpass the $100 mark.

However, when demand consistently exceeds supply, prices often rise until consumption starts to slow down—a phenomenon known as demand destruction. For silver, rising prices could eventually make some industrial applications economically unfeasible.

“The silver price needs to continue rising until we see demand destruction, but it’s unknown what that price point will be. Some estimates suggest that at $135, the solar industry may not be able to profitably manufacture solar panels,” Wall Street Mav explained.

Analysts Draw Parallels Between Bitcoin and Silver

The impressive performance of silver has led many analysts in the cryptocurrency space to evaluate Bitcoin’s chart. Merlijn The Trader noted that silver finished a multi-year cup-and-handle pattern before its current surge.

This observation suggests that Bitcoin might be in a similar phase, silently forming the same pattern on its weekly chart. If the pattern successfully completes, Bitcoin could experience a significant upward breakout, similar to silver.

“BITCOIN IS QUIETLY BUILDING A CUP & HANDLE ON THE WEEKLY. Long base. Slow accumulation. Maximum boredom. Silver did this for years… then exploded. When this structure resolves…It rarely resolves gently,” the analyst stated.

Additional insights from analyst Crypto Rover indicated that gold and silver experienced sharp increases after breaking through their respective monthly accumulation zones. Although Bitcoin has yet to confirm a similar breakout, once it does, it could ignite a notable rally.

“I used to believe every Bitcoin cycle meant diminishing returns. Then silver jumped from a $2 trillion asset to $4 trillion in just 74 days, challenging that notion,” said Julian Figueroa.

Market participants are also keeping an eye on potential capital movement from precious metals into Bitcoin. The timing and possibility of such a shift remain uncertain.