Silver Hits Record Prices In China While Bitcoin Stalls Over Christmas

TLDR

• Silver prices hit record highs in China, driven by tight supply and strong industrial demand during Christmas week.
• Bitcoin remains stagnant over Christmas as low volume reflects reduced institutional participation and lack of defensive inflows.
• China’s silver shortage pushes prices to new highs, with demand from EVs and solar manufacturing driving the surge.
• Geopolitical risks boost silver demand in defense applications, while Bitcoin struggles to attract capital during market stress.

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On Christmas Day 2025, silver prices surged to record levels in China, driven by tight physical supply and strong industrial demand. In contrast, Bitcoin remained relatively stagnant, reflecting low trading volumes and a lack of defensive inflows. This divergence highlights a growing trend where hard assets, like silver, are gaining attention during periods of scarcity, while digital assets, like Bitcoin, are struggling to maintain momentum.

China’s Physical Silver Shortage Drives Prices Higher

Silver prices in China reached new highs on December 25, reflecting a physical shortage of the metal. Chinese markets were trading at a premium to global benchmarks, including London and COMEX. This shortage is linked to high demand for silver in various industries, particularly in solar manufacturing and electric vehicles (EVs). China is the largest consumer of silver in the world, accounting for over half of global industrial demand. As EV production grows, the need for silver in power electronics and charging infrastructure has intensified.

In addition to this, the demand for silver in electronics manufacturing and grid expansion has kept pressure on the supply chain. The ongoing scarcity in China is now having a global impact, with silver trading near $72 per ounce worldwide, up more than 120% in 2025. This sharp increase in prices highlights how supply shortages are affecting global markets.

Bitcoin’s Quiet Christmas Reflects Low Market Activity

While silver prices surged, Bitcoin remained mostly stagnant over Christmas. The cryptocurrency traded sideways, showing little price movement amid reduced trading volumes. This lack of action reflects a decline in institutional participation, which typically drives price changes for Bitcoin. The contrast between Bitcoin’s behavior and silver’s rise suggests that, during times of physical supply constraints, hard assets are favored over digital alternatives.

Bitcoin’s inability to react to market pressures on Christmas Day indicates that it is not yet functioning as a crisis hedge. Unlike silver, which benefits from tangible industrial demand, Bitcoin has struggled to attract defensive inflows. As global geopolitical tensions and supply chain issues persist, traditional hard assets like silver are seeing greater demand from investors.

Geopolitical Risks Boost Silver Demand Over Digital Assets

The growing geopolitical risks from conflicts in Ukraine and the Middle East have contributed to the rising demand for silver. Silver is used in military electronics and munitions, where it is often consumed and not recycled. As defense spending increases, silver’s importance in military applications is likely to continue rising. In contrast, Bitcoin, despite its digital scarcity, has not been able to attract the same level of attention from investors seeking assets that serve industrial or defense needs.

The difference in investor behavior during periods of crisis is becoming clear. While digital scarcity is a key feature of Bitcoin, it has not been enough to drive capital into the cryptocurrency. In times of physical scarcity, particularly in the industrial and energy sectors, investors have gravitated toward assets like silver, which are seen as tangible and crucial for economic functions.

As 2026 approaches, the demand for silver due to physical scarcity and geopolitical concerns may continue to shape the performance of hard assets, leaving digital assets like Bitcoin behind.

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