Precious Metals Become a Shield When Crypto Traders Reduce Risks

The cryptocurrency market is experiencing volatility, forcing investors to seek new ways to protect their capital. Some traders have turned to a unique strategy: using precious metals like gold and silver to hedge against risks from major cryptocurrencies.

Contrarian Strategy - Combining Gold, Silver with Crypto

Analyst @ai_9684xtpa recently highlighted a typical case on X. An address 0x7c9…3c8fd deployed a $2.647 million portfolio on Hyperliquid with a rather unconventional approach. Instead of betting solely in one direction, this trader established two long-term positions in precious metals—specifically gold and silver—and opened 79 short positions targeting top cryptocurrencies such as Bitcoin (BTC at $66.15K), Ethereum (ETH at $1.96K), Solana (SOL at $82.78), dYdX (DYDX at $0.10), and Avalanche (AVAX at $9.02).

This combination reflects a trend among investors who prefer not to put all their money into a single crypto basket but instead seek less volatile assets to stabilize their portfolio.

Trading Results: $573K Profit Amid Market Risks

This strategy has yielded notable results. The portfolio recorded a profit of $573,000, demonstrating its effectiveness in the current market environment. However, not all positions are profitable—ETH and SOL are currently at a loss of about $1,000, while most other positions remain in profit.

Cautious Sentiment and the Search for Stable Assets

The overall picture shows a shift in market psychology. Instead of solely tracking crypto prices, sophisticated traders are now combining multiple asset types to manage risk. Precious metals, with their long-standing history as a store of value, are becoming a natural choice for those looking to hedge their crypto investments. This is not just a single trade but a sign of a broader trend in how markets are handling uncertainty.